Budget 2025: What It Means for the Gambling & Hospitality Sectors

After months of speculation and an industry on tenterhooks, today’s Budget finally delivered clarity — with a mix of relief, surprises, and some significant financial pressures ahead.

Land-Based Gaming: Clear Relief for Operators

The Government has confirmed that Machine Games Duty (MGD) will remain frozen across all categories, ending weeks of uncertainty for arcade, AGC and bingo operators who feared an increase.

bacta President Joseph Cullis said the decision was “exceptionally good news” and praised the Treasury for listening to industry evidence:

“In the lead up to the Budget, we made clear at every opportunity that any rise in MGD would have threatened jobs, forced closures and damaged high streets and coastal towns. Today’s decision shows that our evidence-based approach has been listened to.”

He added that freezing MGD protects business stability, gives confidence to operators and avoids the damaging consequences many feared.

For the land-based sector, this was undoubtedly the biggest win of the day.

Online Gambling: The Biggest Shock

The most dramatic change comes for remote operators. Remote Gaming Duty (RGD) will almost double from 21% to 40% from April next year — a steeper rise than many analysts and investors expected.

Further ahead, general betting duty on online sports wagers will rise from 15% to 25% in April 2027. High-street betting shops will not be affected, and horseracing bets remain exempt.

This represents a significant shift in taxation strategy, squarely targeting online activity rather than retail betting.

Bingo: A Rare Boost

The bingo sector received one of the Budget’s few outright wins, with the Government announcing that bingo duty (10%) will be abolished entirely.

This gives operators greater flexibility to reinvest in venues and enhance customer offerings at a time when entertainment spend remains under pressure.

Pubs & Hospitality: Mixed Outcomes

The hospitality sector received both support and new cost pressures in today’s announcement.

Business Rates: Partial Relief

The Chancellor reconfirmed a permanent reduction in business rates for over 750,000 retail, hospitality and leisure properties from 2026/27. The discount will be funded by a higher multiplier applied to properties valued above £500,000.

However, the benefit will be less generous than previously proposed. The 5p reduction is only a quarter of the 20p discount floated last year, and UKHospitality warned that many businesses will still see “significant increases” due to upcoming revaluations.

A £4.3bn support package has been announced for properties facing large rises.

National Living Wage: Significant Cost Impact

From April 2026:

The National Living Wage rises by 50p to £12.71
18–20-year-old rate jumps 85p to £10.85
16–17-year-old and apprentice rate increases 55p to £8
 

UKHospitality estimates these increases will cost the sector an additional £1.4bn, warning that businesses may pass on costs to customers and reduce hiring of younger staff.

Apprenticeship Support

In some good news, the government will fully fund apprenticeships for under-25s in SMEs, supporting its Youth Guarantee programme.

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26 November 2025

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