UK to Shift Gaming Machine Tax Liability to Suppliers in 2028

Profit-sharing is different. From April 1, 2028, the company supplying the machine will have to account for the duty if it receives a share of the takings. Until then, the tax remains the responsibility of the business where the equipment is installed.

HM Revenue & Customs (HMRC) published its consultation on October 28. The change itself had already been announced. HMRC now wants evidence on the contracts used by pubs, clubs and other venues before settling the detailed rules.

A Supplier Can Own the Machine Without Paying MGD

Machine ownership is only part of the picture. A venue paying a fixed monthly fee to rent a gaming machine keeps the takings and pays MGD. That arrangement will not change in 2028.

A revenue-sharing contract works differently. The supplier owns the equipment and receives an agreed portion of the machine’s proceeds. Under the proposed rules, it will also inherit the tax obligation. Venues with machines of their own remain responsible for MGD.

There are less straightforward cases, too. A contract may include both a fixed payment and a share of revenue. Cash collection can be handled by a different party from the one operating the premises.

HMRC has asked businesses to explain how these agreements work. The answers will help determine where the new liability rules need clearer boundaries.

Most MGD Registrations Belong to Pubs and Clubs

The tax register is heavily weighted towards smaller premises. In September 2026, HMRC recorded about 14,900 MGD registrations. Roughly 13,500 were pubs and clubs. That works out to 90.6%, based on 15M’s calculation.

Some of those businesses have just one or two gaming machines. They still face the same basic requirement to register, maintain records and submit returns.

But the 13,500 registrations should not be mistaken for the number of businesses that will leave the system. A pub owning its machines will remain liable. So will one using a fixed rental arrangement.

HMRC has yet to establish how many venues use profit-sharing agreements and could therefore transfer their MGD obligations to suppliers.

£20M Forecast for the First Year

HMRC puts the additional tax receipts for 2028/29 at £20 million. The forecast drops to £15 million in each of the following two years, then £10 million in 2031/32.

Across those four years, the total comes to £60 million. MGD rates are not being changed as part of this measure.