Machine Games Duty
How much you pay
You pay Machine Games Duty (MGD) on the total net takings from your machine games.
This is what you charge to play the games minus the amount you pay as winnings, including non-cash prizes.
You do not pay it on takings from charity events, tournaments, lottery machines or if the machine is for domestic use.
Machine Games Duty rates
| Cost to play | Prize | Rate you pay | |
|---|---|---|---|
| Machine type 1 - lower rate | 20 pence or less | £10 or less | 5% |
| Machine type 2 - standard rate | 21 pence to £5 | £11 or more | 20% |
| All other machine types - higher rate | More than £5 | Any | 25% |
If your machine has more than one type of game, you pay the rate for the highest rated game on all takings from the machine.
Example
If your machine has 5 games that cost 20 pence to play, and one that costs £6 to play, you’d pay 25% on your net takings from the machine. So if your net takings are £400 you’d pay £100 in duty.