Autumn Budget 2026: machine games duty rises, online slots duty stays at 40%
Chancellor John Healey’s Budget on 28 October 2026 raised the main rate of Machine Games Duty, the tax on gaming machines in betting shops, arcades and casinos, from 20% to 25% from April 2027. Online slots escaped a further rise: Remote Gaming Duty stays at the 40% rate that took effect in April.
By the Best Slots UK team. Published .
Key points
- Machine Games Duty rises from 20% to 25% from 1 April 2027 on higher-stake machines.
- Remote Gaming Duty on online casino and slots stays at 40%, the rate in force since 1 April 2026.
- The new 25% remote betting duty still starts in April 2027; remote UK horseracing bets stay at 15%.
- Duties are paid by operators on their margin; UK players still pay no tax on winnings.
- Coral and Ladbrokes owner Entain has blamed higher gambling taxes for job cuts.
| Budget date | 28 October 2026 |
|---|---|
| Machine Games Duty | 20% → 25% (April 2027) |
| Online casino duty | 40% (unchanged) |
| Remote betting duty | 25% from April 2027 |
| Tax on your winnings | None |
What changed on 28 October
The headline gambling measure was a five-point rise in Machine Games Duty to 25% from 1 April 2027 for machines with a maximum stake above £1 or a maximum prize above £100, which covers betting-shop terminals and Category B machines in casinos, bingo halls, arcades and clubs. Lower-stake pub machines stay at 20%. Industry figures had feared a far bigger increase after reports the Treasury was considering doubling the rates, so trade press described the outcome as a relief for investors, even though bodies such as the Betting and Gaming Council criticised it.
The Budget also changes the treatment of free plays on machines, which become “restricted plays” from April 2027, and opens a consultation until 20 January 2027 on making machine suppliers liable for duty on profit-share machines.
What it means for online slots
For online slot players the important line is what did not change. Remote Gaming Duty, charged on operators’ gross gaming yield from online casino, slots, bingo and poker, nearly doubled from 21% to 40% on 1 April 2026 after the November 2025 Budget. This Budget left it there. The previously announced 25% rate on remote sports betting still arrives in April 2027.
Duty is paid by the operator on its margin, not by you on your stakes or winnings: gambling winnings remain free of personal tax in the UK. But higher taxes can still filter through indirectly, in less generous welcome offers, lower RTP versions of games or cuts to marketing and staff. Entain, which owns Coral and Ladbrokes, has said it is cutting around 400 customer care roles worldwide and has blamed increased UK gambling taxes (our report).
How to protect your value
- Check the RTP in each game’s help screen; casinos can run lower versions of the same slot. See slot RTP explained.
- Favour no-wagering offers, where free spin winnings are paid as cash. Our slot bonuses section compares current terms.
- Remember the 10x cap: since 19 January 2026 bonus wagering cannot exceed 10 times the bonus.
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Frequently asked questions
Do I pay tax on slot winnings in the UK?
No. Gambling winnings are not taxed for UK players. Gambling duties are paid by operators on their profits.
What is the Remote Gaming Duty rate in 2026?
40% of operators’ gross gaming yield from online casino games, including slots, since 1 April 2026. The 28 October 2026 Budget left it unchanged.
What did the 2026 Budget change for gambling?
Mainly Machine Games Duty, which rises from 20% to 25% from 1 April 2027 on higher-stake gaming machines.
Related pages
Sources
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