The UK government has increased the tax on fixed-odds gaming machines (FOGMs) in betting shops by five percentage points, a move announced in Chancellor John Healey’s 2026 budget. This adjustment raises the machine games duty from 20% to 25% on profits generated by these widely used gaming machines.
The tax hike directly affects betting shops, which may face higher operating costs. Industry leaders warn this could lead to closures of numerous betting shops across the UK. Brant Dunshea, chief executive of the British Horseracing Authority, cautioned that the increase poses a “clear risk” that “hundreds, if not thousands” of betting shops could shut down as a result. This potential reduction in physical betting venues may impact players who prefer in-person gambling experiences.
For players, fewer betting shops could mean less convenient access to fixed-odds gaming machines and other betting services. This shift might encourage some consumers to migrate toward online gambling platforms, which operate under different regulatory frameworks and player protection measures. Players should be aware of these differences and maintain responsible gambling habits, especially when transitioning between retail and online environments.
The tax increase is part of Chancellor Healey’s broader strategy to support the UK high street and public services amid ongoing economic pressures. The government aims to raise additional revenue from sectors including banks, landlords, and gambling companies to help fund social programs and address the cost of living crisis.
However, the gambling sector has expressed concerns about the impact of this tax rise. Some operators argue that the increase could be “detrimental and damaging” to the industry, potentially reducing employment and community engagement associated with betting shops. The British Horseracing Authority has committed to engaging with the government to explore ways to mitigate the negative effects on the sport and betting venues.
Players should stay informed about these regulatory changes as they may influence the availability and nature of betting options. Understanding how fiscal policies affect the gambling landscape can help consumers make better-informed decisions and seek support if needed.
In addition to the tax increase on fixed-odds gaming machines, the budget includes measures aimed at supporting local economies and public services. While these initiatives may indirectly affect gambling consumers by shaping the broader economic environment, the direct impact on players centers on the availability and cost of betting services.
Those who frequent betting shops should monitor how these changes affect shop operations and the range of gaming machines available. Meanwhile, players considering online alternatives should review the regulatory protections in place to ensure safe and responsible gambling.
For further information on the UK budget and its implications for gambling, see coverage by The Guardian and SBC News. Additional context on responsible gambling practices is available at GamblingNews.today’s Responsible Gambling section.
Related coverage on the UK gambling market and regulatory updates can be found in our UK category and Betting category.
Source: Gambling | The Guardian.
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