A growing dispute has emerged between the Betting and Gaming Council (BGC) and the Social Market Foundation (SMF) over proposals to significantly increase taxes on high-street gambling machines across the UK.
The debate centers on Machine Games Duty (MGD), with the SMF calling for the tax rate on Category B gaming machines to rise from 20% to 40%. According to the think tank, such a move could generate between £275 million and £458 million in additional annual tax revenue, on top of the roughly £600 million already collected from the sector.
The proposal targets Category B machines found in adult gaming centres, casinos and betting shops, while leaving lower-stakes Category C and D machines in pubs unchanged to avoid placing extra pressure on the hospitality industry.
The SMF argues that higher taxation would better reflect the social harms linked to higher-stakes gambling products. The organisation also points to public polling indicating that around 43% of respondents support raising taxes on adult gaming centres, which have expanded rapidly across many UK high streets, particularly in more economically disadvantaged areas.
The Betting and Gaming Council has strongly opposed the proposal, warning that such a steep increase would threaten jobs, reduce investment and weaken regulated gambling businesses. The trade body also argues that higher taxes could encourage more customers to turn to unlicensed operators outside the regulated market.
The BGC maintains that its members make a significant contribution to the UK economy through employment, tax payments and support for sports, while stressing that millions of people use regulated gambling services responsibly each month.
The debate comes as policymakers continue to examine the UK’s gambling tax framework and consider whether different gambling products should face different tax rates based on their potential level of harm. Discussions over future reforms are expected to remain a key issue as the government reviews gambling regulation and taxation.