All locations must register for MGD before they make any gaming machine(s) available to play.

Machine Games Duty (MGD) was introduced on 1st February 2013 as a replacement tax for the old Amusement Machine Licence Duty (AMLD) and the payment of Output VAT on machine takings.

MGD is payable on the net takings of any machine which pays out a cash prize which is greater than the cost to play at a rate of either 5%, 20% or 25%. This includes gaming machines from most categories and is also applicable to Multi-Game Quiz Machines (SWP’s) as they pay out a cash prize. A quarterly return is required to confirm your payment amount and records should be kept for future reference.


Category B3A machines are the only type of gaming machine that are exempt from MGD due to their status as a Lottery Machine. Club Lottery Ticket Machines (pull-tabs) are also exempt from MGD for the same reason. If you are unsure if MGD applies to a particular machine, please feel free to contact us.

All locations must register for MGD before they make any gaming machine(s) available to play.

HM Revenue & Customs (HMRC) are within their rights to issue a penalty if a location is found to make gaming machines available for play before MGD Registration has been fully processed and without your details listed on the on-line MGD Register. Fines may also apply for late or non-payment of MGD.

Once fully registered your details will appear on the on-line MGD Register which can be checked by entering your post code. Click here to check the register.

AMS can assist you with all aspects of MGD from registration, calculating MGD amounts and completing quarterly MGD Returns. Depending on the terms agreed for the supply of equipment, AMS can also document the actual MGD amount payable on each cash collection for each machine.

We can also take all the hassle away from you for completing the quarterly return by registering as your MGD Agent. Specific terms and conditions will need to be agreed.

If you need any help or advice for any aspect of MGD, please call AMS on 01959 564 331 or HMRC on 0300 200 3700. Don’t worry if you’re not an AMS customer, we are happy to help! Alternatively you can visit the HMRC web site.