Parliamentary Push Targets Duty Rates on High-Stakes Category B Machines

Ninety Labour MPs have signed a letter to Chancellor John Healey that urges an increase in Machine Games Duty specifically on Category B gaming machines ahead of the autumn Budget scheduled for October 28 2026; the group is led by Alex Ballinger MP for Halesowen who also serves as co-chair of the All-Party Parliamentary Group for Gambling Reform. The correspondence points to concentrated harm in deprived communities and draws on evidence linking these higher-stakes slots and fruit machines to problem gambling patterns while it calls for protections that would leave pubs bingo halls and lower-category machines untouched. Category B machines operate in betting shops adult gaming centres bingo halls and casinos where they allow higher maximum stakes than machines found in pubs or family entertainment centres. Observers note that these terminals have long formed a core revenue stream for operators yet they also attract regulatory scrutiny because of their association with faster play cycles and larger average losses per session. The letter references modelling from the Social Market Foundation that projects a duty rise to 40 percent could deliver between £275 million and £458 million in additional annual revenue after accounting for behavioural adjustments among players. Those figures emerge from calculations that incorporate reduced play volumes while they still assume continued operation across the existing estate of machines. Proponents argue the adjustment would target only the higher-stakes category thereby shielding lower-stakes options that support community pubs and traditional bingo venues.

Details of the MPs' Letter and Key Arguments

The signatories highlight data showing elevated rates of problem gambling in areas where Category B machines cluster most densely. Research cited within the letter connects these machines to financial strain on households already facing economic pressure and it emphasises that any duty increase should avoid unintended consequences for venues that rely on lower-stake equipment. The MPs position the proposal as a revenue-raising measure that aligns with broader efforts to address gambling-related harm without disrupting the wider leisure sector.

Alex Ballinger has previously worked on cross-party initiatives through the All-Party Parliamentary Group for Gambling Reform and the current letter continues that focus by isolating Category B machines as the priority target. The document stops short of recommending changes to Machine Games Duty rates on machines in pubs or on lower-stake terminals found in family settings and it explicitly requests safeguards for those segments.

Industry Response from Betting and Gaming Council

The Betting and Gaming Council has responded by warning that higher duty rates risk triggering venue closures and job losses across betting shops adult gaming centres and bingo halls. Council representatives point to existing operating margins and argue that further tax pressure could accelerate site rationalisation at a time when footfall in some locations remains below pre-pandemic levels. They also note that any reduction in machine numbers would directly cut the employment supported by those sites including roles in maintenance customer service and venue management.

Operators maintain that Category B machines already contribute substantial tax revenue through the current Machine Games Duty structure and they contend that behavioural responses to a rate hike could shrink the projected revenue gains below the Social Market Foundation estimates. The council's statements emphasise the need for a balanced approach that considers both fiscal objectives and the sustainability of licensed premises.

Context Around the October 2026 Budget Timeline

Chancellor John Healey is scheduled to deliver the autumn Budget on October 28 2026 and the letter arrives as Treasury officials prepare options for potential tax adjustments across multiple sectors. Parliamentary sources indicate that the submission will form part of the evidence base reviewed during policy formulation though final decisions rest with the Treasury and will reflect wider fiscal priorities. The timing allows several weeks for further submissions from industry bodies local authorities and public health organisations before the Budget announcement.

Potential Revenue and Harm Modelling

The Social Market Foundation analysis incorporated within the MPs' letter models several duty-rate scenarios and isolates the impact on Category B machines alone. At a 40 percent rate the central estimates range from £275 million to £458 million in net additional receipts after players adjust their spending behaviour. Separate calculations referenced in the same work estimate that gambling-related harm already generates more than £2.3 billion in annual economic costs across Great Britain though those figures encompass all gambling formats rather than Category B machines in isolation.

Researchers involved in the modelling stress that actual outcomes depend on enforcement consistency across different venue types and on any concurrent regulatory changes to stake limits or machine placement rules. The letter therefore requests that any duty increase be paired with continued monitoring of participation rates and harm indicators.

Conclusion

The letter from the ninety Labour MPs sets out a targeted proposal to adjust Machine Games Duty on Category B machines while it seeks to preserve lower-stake options in pubs and bingo halls. The Betting and Gaming Council has outlined concerns over closures and employment effects and both sides have referenced quantitative modelling to support their positions. Treasury officials will consider these submissions as they finalise Budget measures ahead of the October 28 2026 deadline.