UK gambling stocks rally as Autumn Budget sets 25% Machine Games Duty rate
Shares in Rank Group, Entain and evoke climbed after Chancellor John Healey announced a five-percentage-point increase in duty on Category B gaming machines from 2027.
- Chancellor of the Exchequer John Healey confirmed Machine Games Duty on Category B machines will rise from 20% to 25% from 1 April 2027.
- Rank Group shares surged by more than 10%, whilst Entain and evoke recorded share price gains above 4%.
- Retail operators had previously cautioned that steeper tax increases would threaten the viability of gaming venues and betting shops.
UK-listed gaming and betting operators experienced share price gains following Chancellor of the Exchequer John Healey’s Autumn Budget announcement, which established a five-percentage-point rise in Machine Games Duty on Category B machines. Delivering the fiscal statement for the Labour administration led by Prime Minister Andy Burnham, Healey confirmed that the duty rate applied to Category B machines will increase from 20% to 25%, with the change taking effect on 1 April 2027.
Rank Group shares lead market gains
Rank Group recorded the strongest reaction across the sector, with its share price rising by more than 10% to reach 86.9p following the Budget statement. The group had previously expressed acute concern regarding potential tax increases on retail machine revenue. Richard Harris, Chief Executive Officer of Rank Group, had warned that the company would face the closure of approximately one third of its venue estate if the government decided to double Machine Games Duty.
Financial disclosures show gaming terminals represent a substantial portion of Rank Group's venue earnings. Within its Mecca bingo estate, net gaming revenue from gaming machines contributed £60.1m of the total £143m in net gaming revenue reported in 2025/26. In the operator's Grosvenor Casinos division, gaming machines generated £113.2m of the total £397.3m net gaming revenue recorded across the estate.
Entain and evoke record positive movement
Shares in Entain also moved higher during trading on the day of the announcement. By 2:30pm GMT, Entain’s share price stood at 474.7p, marking an increase of 4.86%. Trading data showed a sharp upward shift during the Chancellor's address, with the stock moving from 456.4p to 484.1p between 12:50pm and 1:00pm.
The retail estate operated by Entain includes high-street betting shops under the Ladbrokes and Coral fascias. Stella David, Group Chief Executive Officer of Entain, had previously stated that an increase in Machine Games Duty posed a threat to the ongoing commercial viability of many Ladbrokes and Coral retail branches.
William Hill owner evoke also registered share price gains following the Treasury's announcement, with its shares rising by over 4% to 44.75p. The operator has previously downsized the William Hill retail betting shop portfolio in response to prior duty increases applied to Remote Gaming Duty and General Betting Duty.
The market reaction occurred whilst evoke remains subject to a pending takeover, with the company currently in the process of being acquired by Bally’s Intralot in an agreed deal valued at 52p per share. With the implementation of the new 25% Machine Games Duty rate scheduled for April 2027, land-based operators across the UK have been given a multi-year window to adjust to the tax adjustment on Category B gaming machines.
