Ninety Labour MPs Push for Machine Games Duty Increase on Category B Machines

Ninety Labour MPs have sent a letter to Chancellor John Healey calling for an increase in Machine Games Duty on Category B machines to 40 percent, and they want the change included in the Autumn Budget scheduled for October 28. Alex Ballinger, the MP for Halesowen and co-chair of the All-Party Parliamentary Group for Gambling Reform, led the group in this effort, which targets machines found in betting shops, casinos, and adult gaming centres while leaving pubs and lower-category machines untouched.

Details of the Parliamentary Letter

The letter draws on modeling from the Social Market Foundation that projects the proposed duty rise could generate between £275 million and £458 million each year, and observers note that the figures come from analysis focused specifically on Category B machines rather than broader gambling sectors. Those who've examined the proposal point out that the MPs emphasize revenue potential without extending the hike to machines in pubs or to categories that carry lower stakes and prizes, which keeps the scope narrow and targeted at higher-impact locations.

Researchers who track gambling policy have observed that Category B machines typically offer higher maximum stakes, and the letter frames the duty adjustment as a way to address associated harms through increased taxation. The timing aligns with preparations for the October 28 budget, which places the request directly in front of decision-makers as they finalize fiscal measures for the coming period.

Revenue Modeling and Projected Outcomes

According to the Social Market Foundation modeling cited in the letter, raising Machine Games Duty to 40 percent on these machines stands to deliver substantial annual returns, and the estimates range from £275 million to £458 million depending on variables such as player behavior and machine usage patterns. People familiar with the report note that the analysis avoids applying the increase across all gambling venues, which spares pubs and lower-stake machines from additional tax burdens while concentrating the change on the specified categories.

Data from the modeling also highlights how the revenue could support wider public finances, and experts who reviewed similar tax adjustments in past years indicate that such shifts often produce measurable income when applied to high-volume machines. The letter positions the change as fiscally responsible because it draws from existing infrastructure in betting shops, casinos, and adult gaming centres without requiring new regulatory frameworks.

Industry Context and Budget Pressure

Industry representatives have issued warnings about possible shop and casino closures along with job losses if tax rates rise further, and those statements add to the pressure surrounding the Autumn Budget process. The letter arrives amid ongoing discussions about how duty levels affect the regulated market, and observers note that operators continue to highlight risks of reduced viability for certain venues when duties climb.

The All-Party Parliamentary Group for Gambling Reform has previously examined machine taxation, and the current letter builds on that work by providing specific figures and a defined rate of 40 percent. Figures from the cited modeling show the potential scale of revenue, yet industry responses focus on operational impacts that could follow implementation, which creates a clear point of tension ahead of the October 28 deadline.

Broader Implications for Gambling Taxation

Category B machines operate under existing duty structures, and the proposed adjustment would mark a notable shift for those specific devices in betting shops, casinos, and adult gaming centres. The MPs' request keeps lower-category machines and pub-based equipment exempt, which narrows the affected segment and directs attention toward locations where higher-stake play occurs most frequently.

According to the Social Market Foundation analysis referenced in the correspondence, the revenue range reflects different scenarios for machine operation and player engagement, and the letter presents these projections as a basis for budget consideration. Those who've studied duty changes note that targeted increases can produce steady income streams when applied to established machine types, and the October 28 budget date provides a concrete window for any decision.

Conclusion

The letter from the ninety Labour MPs, coordinated by Alex Ballinger, sets out a clear request for a 40 percent Machine Games Duty rate on Category B machines in time for the Autumn Budget. The Social Market Foundation modeling supplies the revenue estimates, and the proposal maintains exemptions for pubs and lower-category machines while industry voices continue to flag potential closures and employment effects. This development places the matter squarely before Chancellor John Healey as fiscal planning advances toward October 28.