90 Labour MPs Back MGD Proposal; Pressure Amplified On Chancellor

Labour MPs have thrown their weight behind the idea of raising the Machine Games Duty (MGD) rate. A total of 90 MPs have signed a letter written by colleague Alex Ballinger in an effort to coax Chancellor of the Exchequer John Healey to make a change.

The letter represents the first organised push from Labour backbenchers before the industry lobbied against a rise. And it is prevalent given Ballinger’s thoughts on the betting industry.

Getting his point across

Ballinger, who has emerged as one of the prominent critics of the gambling sector since winning a seat in the House of Commons at the 2024 election, has championed the MGD cause.

A move to lift the MGD rate from 20% to 40% of net takings on Category B machines has been in the pipeline for some time, and it has been a hot talking point.

His main target has been Adult Gaming Centres (AGCs), where venues have clustered in some of the UK’s poorest areas, and he cited research from the Social Market Foundation (SMF) to support his MGD point. The think tank has called for stringent measures, insisting that imposing a tax hike on MGD could raise between £275 million and £458 million in revenues for the government.

And in his letter to the Chancellor, Ballinger constructed his argument in a way that came across as pro-community and anti-business, as he said:

“This targeted Labour reform would protect communities from harm, require fair contributions from the broadest shoulders, and back high streets creating opportunity and retaining wealth.

“It would realise the Prime Minister’s determination to return power to communities and build an economy serving them, in line with our manifesto commitment to reduce gambling harm. Fair, popular, and fiscally responsible, this should be seized at our Budget.”

Incurring wrath of betting industry

Over the past few weeks, the battle lines between the government and the betting industry have become entrenched. The Betting and Gaming Council (BGC), a trade body representing 90% of the UK’s regulated industry, warned that an increase in MGD could see as many as 16,000 jobs lost and 1,500 betting shops closed, which would equate to a £124 million hit to the Treasury.

The prospect of shop closures has become a tangible reality, and many of the country’s leading betting operators have lobbied the government to take a different course of action.

Ladbrokes and Coral owner Entain, which recently released its campaign entitled ‘What’s at Stake’ is adamant that an MGD rise would make shops “uneconomic” while Paddy Power are poised to close 100 betting venues.

On top of that, Betfred co-founder Fred Done pointed to the impact MGD would have on his company, claiming that a rise could see as many as 495 shops shuttered.

Within that, Done has expressed his worries that the betting industry, more widely speaking, could be decimated by bumping up MGD.

Budget countdown

Last year, the betting industry’s worst fears were realised when remote gaming duty (RGD) paid on online casino bets soared from 21% to 40% of gross gambling yield (GGY).

Meanwhile, as of April next year, general betting duty paid on online sports bets will climb from 15% to 25% of GGY, with horseracing exempt.

All eyes will turn to the looming budget which takes place on Wednesday, October 28. The noise over MGD has been growing louder, and it won’t be long before we discover whether Ballinger’s intervention makes the difference.