The UK land-based trade association Bacta released a survey on August 5, 2026, outlining the projected impact of a potential Machine Games Duty increase. The data was collected before Andy Burnham was confirmed as UK Prime Minister.
Industry Response and Financial Outlook
According to the report, all respondents identified a negative effect on their operations. Ninety percent classified the impact as severe, while the remaining ten percent described it as moderately negative. When asked to pinpoint the primary challenge of a tax hike, 67 percent of participants cited maintaining profitability.
Keeping staff levels stable accounted for 23 percent of responses, and investing in new machines and refurbishment programs represented 10 percent.
The survey indicates that 87 percent of members believe a tax increase would make a downturn in investment highly probable. Respondents projected specific outcomes, with 43 percent predicting the closure of adult gaming centers. A decline in profitability was expected by 30 percent of the group, and 27 percent forecasted a reduction in employment numbers.
Bacta president Joseph Cullis stated that raising taxes on gaming machines would damage high streets, seaside towns, and the wider supply chain. He noted that the industry already faces a significant tax burden and argued that further increases could force the regulated sector to shrink, allowing the illegal unregulated market to gain ground.
The survey covers the land-based gaming sector, including amusement arcades and machine manufacturers.