URGENT Act now — Potential rise in Machine Games Duty for clubs.
A letter from Chris Haley, Chairman and letter template for your local MP
You may have seen a number of alarming reports in the national press in recent weeks stating that the Chancellor is considering increasing the rate of Machine Games Duty on gaming machine income to 40% - doubling it from the current 20% rate.
Whilst much of the media focus has been on Adult Gaming Centres on the high street, club’s Category B4 machines could also be caught by this increase unless we can convince the Chancellor to exclude them. Interestingly, pubs (Category C machines) seem to have been excluded from any potential rise; the Prime Minister Andy Burnham rightly recognising the significant harm this would cause to their finances at a time when hospitality businesses need more support not less.
As ever clubs seemed to have been overlooked and there is a very real danger that an MGD increase, directly affecting clubs could be announced in the Budget on 28th October 2026.
Those of us that are committed to clubs and their survival, understand the devastating impact that such a tax increase would have, and I am therefore asking for your help once again to try to influence the Government thinking before the Budget is presented; the earlier we raise our voices and the louder we shout the more chance we have of making an impact.
Dransfields have written to the Treasury and held talks via our trade body, but the best chance of influencing the outcome will be achieved by clubs involving constituency MP’s and making them aware of the negative impact any MGD increase would have.
I am therefore asking you to write to your local MP, or to invite them to your club to see what you do for your community, and tell them your concerns. I am sure that the majority will not be aware of this potential threat and will only be focussed on the headlines involving Adult Gaming Centres; they may well be supportive of the increase without understanding that clubs will also be directly affected.
If your unsure who your local MP is, you can check via the following government website:
https://members.parliament.uk/FindYourMP
The more letters we generate, the more chance we have of heading off this devastating increase in MGD.
I urge you to contact your MP as soon as possible and highlight that to many clubs the income from their gaming machines is the difference between success and failure, and helps to subsidise their charitable, social and community activities. It is highly likely that some clubs will not be able to absorb the reduced revenue from their machines caused by a rise in MGD, and could ultimately be forced to close. I would also stress that private members social clubs are run as not for profit organisations and function for the benefit of their members and to service the needs of their local community.
You can find a template letter you can use for ease on the Dransfields website.
www.dransfields.com
On another note, we are still awaiting the outcome of the Gambling Commission consultation on gaming machine technical standards which I told you about last year. However, I am aware that the work we all did submitting our thoughts and opinions have been considered and I am very hopeful that our collective voices had an impact. As soon as the results are published I will of course let you know.
Kind regards
Chris Haley
Chairman
