Budget 2025: Machine Games Duty Hike Threatens High-Street Betting Shops and Racing Income

Bookmakers are bracing for potential shop closures as Chancellor John Healey is expected to raise Machine Games Duty (MGD) in Wednesday’s budget. Industry warnings suggest the tax increase could lead to the loss of thousands of high-street betting shops, dealing a blow to local communities and racing’s off-course gambling revenue. This comes less than a year after racing successfully lobbied Rachel Reeves to exempt the sport from a betting levy hike. The sector now faces renewed anxiety over its financial stability. The shift away from old-fashioned shops, driven by self-harm concerns linked to gaming machines, has already reshaped the industry. If the duty rises as predicted, the knock-on effects could accelerate closures, further eroding the traditional betting shop presence on UK high streets and threatening the funding that flows from bookmakers to horse racing.