Gambling Operators Highlight Risks from Potential Machine Games Duty Adjustments
Yara Beck · Oct 18, 2026
Gambling Operators Highlight Risks from Potential Machine Games Duty Adjustments
Entain and Rank Group have issued warnings to government officials about reported plans to increase Machine Games Duty ahead of the autumn Budget scheduled for October 28 2026, and they connect those concerns to earlier tax changes that already reshaped their operating costs.
The two companies operate major high street brands including Ladbrokes, Coral and Grosvenor Casinos, and they argue that another rise in the tax on slot machines and similar equipment would compound pressure created when remote gaming duty moved from 21 percent to 40 percent in April 2026.
Details of the Warnings Issued by Both Firms
Representatives from Entain and Rank Group stated that further tax increases would threaten venue viability, lead to closures, produce job losses, reduce overall tax receipts and halt planned investment, and they presented these points in submissions tied directly to the October 28 2026 Budget timeline.
Rank Group noted that three Grosvenor casinos in Swansea, Reading Central and Sunderland had already closed because of economic viability issues, and company statements linked those decisions to the cumulative effect of rising costs that include the April 2026 duty change.
Revenue Context and Recent Performance Figures
Despite the warnings, Entain reported a 4 percent increase in group net gaming revenue during Q3 2026, and observers note that the company presented this growth alongside its caution about additional tax pressure on physical machines.
Rank Group also referenced ongoing revenue trends while highlighting the three recent closures, and both operators stressed that their submissions focus on protecting existing sites rather than opposing all forms of taxation.
Background on Machine Games Duty and Prior Changes
Machine Games Duty applies to slot machines, fruit machines and similar equipment found in casinos, betting shops and arcades, and government discussions about raising the rate form part of broader fiscal planning ahead of the October 28 2026 Budget.
The April 2026 increase in remote gaming duty from 21 percent to 40 percent already raised costs for online operations, and the companies argue that applying similar upward pressure to Machine Games Duty would affect the remaining physical venues that still rely on those machines for a significant share of income.
According to data compiled by the Australian Bureau of Statistics, comparable tax adjustments in other jurisdictions have sometimes produced shifts in venue numbers and employment levels, and UK operators reference such patterns when describing possible outcomes here.
Potential Consequences Outlined by the Companies
Entain and Rank Group listed several specific outcomes they associate with higher Machine Games Duty, including reduced venue viability that could trigger further closures, direct job losses at affected sites, lower overall tax receipts once closures reduce the taxable base, and pauses in investment programs that would otherwise modernise remaining locations.
Those points appear in formal communications sent to officials responsible for the Budget, and the companies frame the October 28 2026 date as a critical decision point where the rate for Machine Games Duty could be set.
Company Positions and Recent Operational Decisions
Entain owns Ladbrokes and Coral betting shops that contain gaming machines subject to the duty, while Rank Group operates Grosvenor Casinos whose recent closures in Swansea, Reading Central and Sunderland illustrate the viability challenges already in play.
Both firms acknowledge some revenue growth in the third quarter of 2026 yet maintain that additional tax increases would outweigh those gains by affecting the physical estate more directly than online channels.
Observers note that the submissions stop short of claiming immediate closure lists, and instead they present scenarios that could unfold if the reported plans for Machine Games Duty proceed unchanged.
Conclusion
The warnings from Entain and Rank Group centre on the interaction between the April 2026 remote gaming duty rise and any further increase in Machine Games Duty ahead of the October 28 2026 Budget, and the companies tie those concerns to documented closures, employment impacts and investment pauses.
Revenue growth figures for Q3 2026 sit alongside the cautions, and the operators present their case through direct communications to government channels without combining the issue with other regulatory topics.