UK Gambling News: MGD Fight, Grosvenor £5m, Betdaq Sold

Downing Street SW1 street sign beside the black iron railings in Westminster

The Budget fight over machine tax is the story of the week

The industry and a large group of Labour MPs are now publicly lobbying the Chancellor in opposite directions, eight days before John Healey delivers his Autumn Budget on 28 October. The argument is about Machine Games Duty (MGD), the tax on gaming machine profits, and in particular whether the rate on Category B machines should double from 20% to 40%.

Category B machines are the higher-stakes slots found in betting shops, adult gaming centres, casinos and bingo halls. Any change would land on land-based venues rather than online casinos, but it matters to anyone who plays in a Grosvenor, a Genting or a high street bookmaker, because operators say the result would be fewer venues and fewer machines.

Nothing has been decided. The Treasury has not confirmed that a rise is on the table, and reports that Healey is weighing a rise aimed at betting shops and arcades remain unconfirmed. What changed this week is that both sides put their numbers on the record.

Six gambling bosses ask Healey to rule out new tax rises

On 14 October the chief executives of Entain, Flutter UK and Ireland, bet365, Bally's Corporation, evoke and Betfred wrote to the Chancellor through the Betting and Gaming Council (BGC). They asked him to leave MGD untouched and to pause the General Betting Duty increase due in April 2027 until the effect of earlier rises has been assessed.

The letter says more than 600 betting shops have closed and more than 10,250 jobs across online and retail have been lost or announced for redundancy since the 2025 Budget. It names closures at Betfred and William Hill, shops under review at Paddy Power and 300 job cuts at bet365's Stoke-on-Trent site. It also points out that Remote Gaming Duty, the tax online casinos pay, has nearly doubled.

The BGC's case rests on EY modelling it commissioned: doubling MGD on Category B machines to 40% could close between 690 and 1,470 betting shops and 28 to 34 casinos, cost 11,600 to 15,900 jobs and leave the Exchequer up to £124 million worse off. BGC chief executive Grainne Hurst put it bluntly: "You cannot tax businesses that have closed." The full statement is on the BGC website.

Casino operators added their own warnings. A BGC release on 12 October said up to 3,800 casino jobs were at risk and that some operators may consider closing up to a third of their estates. At a panel on 14 October, Genting's chief operating officer Paul Willcock said the company is "itching to invest" in the UK if it gets certainty on tax, while Betfred founder Fred Done has said a doubled duty would lead him to close 495 shops within a year.

90 Labour MPs push the other way

Two days later, 90 Labour MPs signed a letter led by Alex Ballinger MP asking Healey to raise MGD on Category B machines to 40%. The proposal leaves lower-category machines alone, keeps pubs entirely outside it and protects the abolition of Bingo Duty.

Ballinger's focus is adult gaming centres, which he says are concentrated in deprived areas. The letter cites Social Market Foundation estimates that a 40% rate could raise between £275 million and £458 million a year, and Ballinger called it "a popular, targeted and proportionate way to raise revenue". Gaming Intelligence has the detail of the letter.

The BGC replied on 17 October that it is "deeply misguided" to think higher taxes on betting shops and casinos will protect high streets, repeating its EY figures of up to 16,000 jobs lost and nearly 1,500 shops and 34 casinos closed. For players, the practical question on 28 October is whether the rise happens and whether it is limited to certain venues. If it does go through, expect operators to announce closures and machine cuts quickly, as they did after the last Budget.

The Houses of Parliament and Westminster Bridge reflected in the River Thames

Image: Gaming Intelligence

Grosvenor's owner pays £5m over money laundering and safer gambling failures

The biggest Gambling Commission action this month hit the land-based sector. On 7 October the Commission announced that three Rank Group operators, Grosvenor Casinos Limited, Grosvenor Casinos (GC) Limited and Gaming Group Limited, which together run 51 casinos in Great Britain, will pay £5 million and commission a third-party audit of their anti-money laundering and safer gambling controls.

The failings are specific. The operators had not updated their anti-money laundering policies for changes to the Money Laundering Regulations made in 2020, and did not carry out enhanced checks when their own rules required them. On safer gambling, one customer lost £50,000 with no interaction, another won about £260,000 and then lost about £250,000 within 12 days with no recorded interaction, and a returning self-excluded customer lost £25,000 before staff stepped in.

Sue Young, the Commission's executive director of operations, said these risks are "equally alive in the land-based sector" as online. The money goes to the government's Consolidated Fund. The full notice is on the Gambling Commission website.

The settlement has not dented trading. Rank reported on 15 October that like-for-like revenue rose 5% to £216.1 million in the three months to 30 September, with Grosvenor venues up 6% to £108.1 million. Chief executive Richard Harris used the update to warn that any MGD rise would "reduce venue viability".

Ken Howell's Sports Betting licence suspension is lifted

The Commission lifted the suspension of Targetlocal Ltd's remote licence on 13 October, "following significant action taken by the operator". Targetlocal trades as Ken Howell's Sports Betting and runs kenhowells.com, which offers online casino, sports betting and virtual betting.

The licence was suspended with immediate effect on 21 September after Commission enquiries found anti-money laundering failings. During the suspension customers could still log in and withdraw. The Commission's notice lists no further conditions, so the operator can trade online again. The case shows that a suspension is not always the end: the Commission uses it to force changes, and lifts it once satisfied.

Matchbook buys Betdaq, and Betdaq trading ends on 21 October

Matchbook completed its purchase of rival betting exchange Betdaq on 14 October for an undisclosed sum. The existing Betdaq service keeps trading until 21 October, and customers can withdraw funds until 4 November.

If you hold a Betdaq balance or open positions, settle them before trading stops and withdraw through the official Betdaq site, not through links sent by email or text. Matchbook chief executive Ronan McDonagh said the first priority through the transition is Betdaq's customers. iGaming Business has the key dates.

Image: iGaming Business

Entain's UK online gaming revenue jumps 17%

Entain, owner of Ladbrokes and Coral, said on 15 October that UK and Ireland online net gaming revenue rose 14% in the third quarter, with online gaming up 17% and sports up 3%. Group revenue rose just 2% because Brazil fell 36% after the country announced an immediate ban on online gambling on 25 September.

The UK figure shows online casino play still growing despite the Remote Gaming Duty rise, the bonus wagering cap and the financial risk checks. Chief executive Stella David used the trading update to "strongly urge" the government to think carefully about further tax increases.

ASA bans a "97% accuracy" football prediction app ad

The Advertising Standards Authority upheld a complaint on 14 October against a Facebook ad for AI Scorecast, an app run by HRY Games. The ad claimed a "97% accuracy rate" for football predictions and said it had correctly called six matches, without any mention that bets can lose.

The ASA found the ad misleading and irresponsible because it implied users were very likely to profit from gambling decisions made with the app. The ruling is a reminder that tipping and prediction tools fall under the same advertising rules as operators. No app or system makes betting a reliable source of income, and any ad that suggests otherwise is a warning sign. Gambling News reports the ruling.

What to watch next week

21 October: last day of trading on Betdaq.
28 October: the Autumn Budget, and the answer on Machine Games Duty and the April 2027 General Betting Duty rise.
4 November: Betdaq withdrawal deadline, and the close of the government's consultation on banning third-party bets on National Lottery Powerball draws.

If the Budget brings a duty rise, operator announcements on venue closures are likely to follow within days. This site will report the outcome and what it means for UK casino players. Gambling is for over-18s only; if it stops being fun, use deposit limits, GAMSTOP or the National Gambling Helpline on 0808 8020 133.

Sources

FAQs

Will Machine Games Duty go up in the 28 October Budget?

Nobody knows yet. The Treasury has not confirmed any change. Ninety Labour MPs want the Category B rate doubled from 20% to 40%, while six of the biggest operators have asked the Chancellor to leave it untouched. The answer comes when John Healey delivers the Autumn Budget on 28 October 2026.

Does Machine Games Duty affect online casinos?

No. Machine Games Duty applies to physical gaming machines in betting shops, arcades, casinos and bingo halls. Online casinos pay Remote Gaming Duty instead, which the industry says has nearly doubled. A Machine Games Duty rise would mainly affect land-based venues and could lead to closures and fewer machines.

Why did Grosvenor Casinos pay £5 million?

The Gambling Commission found anti-money laundering and safer gambling failures at three Rank Group operators running 51 casinos. Examples included no interaction while one customer lost £50,000 and a returning self-excluded customer losing £25,000 before staff acted. The operators will pay £5 million and commission an independent audit of their controls.

Is Ken Howell's Sports Betting allowed to trade again?

Yes. The Gambling Commission lifted the suspension of Targetlocal Ltd's remote licence on 13 October 2026, following significant action taken by the operator. The licence had been suspended on 21 September over anti-money laundering failings, though customers could still withdraw their funds throughout.

When does Betdaq close after the Matchbook deal?

Trading on the existing Betdaq service ends on 21 October 2026, and customers can withdraw funds until 4 November 2026. Settle any open positions before trading stops and withdraw through the official Betdaq site rather than any link sent by email or message.

18+ only. Gambling can be addictive; set limits and never chase losses. Free, confidential support: BeGambleAware.

UK Gambling News This Week: The Machine Games Duty Fight, Grosvenor's £5m Bill and Betdaq's Exit