UK lifts Machine Games Duty to 25% on higher-stakes machines, short of feared 40% rate

UK Chancellor of the Exchequer John Healey has raised Machine Games Duty (MGD) from 20% to 25% on higher-stakes gaming machines, an increase below the 40% rate floated before Wednesday’s budget. Lower-stakes Category C and D machines found in pubs are exempt , in line with a proposal from the think tank Social Market Foundation (SMF). MGD is levied on the profits generated by gaming machines in betting shops and arcades. Healey said the extra revenue will fund an increase in the small business rates relief threshold for retail, hospitality and leisure businesses, from £12,000 ($16,000) to £18,000 ($24,000).