MGD rise branded “deeply damaging” but UK operators avoid the feared 40% rate

UK betting and gaming operators have avoided the worst-case scenario on Machine Gaming Duty (MGD), after it was confirmed that the rate will rise to 25% from April 2027 rather than doubling to 40%. The market reaction was immediate: shares in major listed operators moved higher, even as industry bodies warned of job losses, shop closures and a shift toward unregulated play.

1. Steve Grech, Group CEO Europe of Trust Payments, said the Government’s decision brought clarity and removed the risk of a 40% duty, but stressed that 25% is still a heavy load for operators with tight margins. He pointed to the long lead time until April 2027 as a chance to revisit pricing, machine mix and investment plans.
2. Grech also flagged a familiar problem for high-risk payments and gambling businesses: when retail economics get squeezed, activity can migrate elsewhere. In his words, “the worry is that tax will migrate to responsible, regulated online offerings.”
3. According to Grech, the market took the news as a relief signal, with share prices of Entain and Rank Group rising by approximately 7% in the immediate aftermath.
4. The Betting and Gaming Council (BGC) called the increase “deeply damaging.” Chief executive Grainne Hurst cited independent EY modelling that forecasts nearly 9,000 job losses and the closure or severe risk to approximately 1,000 betting shops and casinos, warning that this would weaken high streets and could strengthen illegal gambling operators.
5. Entain said the rise would cost its UK and Ireland retail operations around £25 million annually. CEO Stella David warned that the additional tax pressure would compound damage to jobs, high streets and the wider industry, while also increasing the risk of consumers moving into unregulated illegal gambling markets.

The detail that matters for PSPs and acquirers is not just the tax rate, but the timing. April 2027 gives operators room to rework margins, site economics and payment flows before the increase lands; that usually means more scrutiny on retail performance, more pressure on online conversion, and a fresh round of arguments about which channels can still absorb the cost.