Adult gaming centres (AGCs), often referred to as 2slot sheds,2 could face a a3460 million tax increase under a potential Labour government led by Andy Burnham, according to a recent report by the Social Market Foundation (SMF) thinktank.
AGCs have rapidly expanded across UK high streets, particularly in economically deprived areas, offering a32 slot machine spins every 2.5 seconds. Despite a recent tax rise on online casinos, physical slot machines in these venues remain taxed at 20% machine games duty (MGD). The SMF proposes doubling this rate to 40%, which could raise an additional a3275 million to a3458 million in tax revenue on top of the a3600 million currently collected.
This tax increase would affect not only AGCs but also casinos and major operators such as Admiral and Merkur. For players, this could translate into changes in the availability and cost of playing on high-street slot machines. Operators might respond by reducing payouts or the number of machines, potentially limiting access to these venues. However, the proposal would leave lower-stakes category C and D fruit machines in pubs untouched, preserving a key revenue stream for the hospitality sector.
Andy Burnham has voiced concerns about AGCs targeting vulnerable individuals and has supported measures to give local authorities greater powers to restrict new gambling premises. He has criticized the 2aim to permit2 licensing rule introduced by the 2005 Gambling Act, which effectively forces councils to approve new gambling venues despite local opposition. Earlier this year, Burnham joined over 300 signatories in urging Labour leader Keir Starmer to scrap this rule to better control the spread of gambling outlets.
The trade body Bacta, representing AGCs and amusement arcades, criticized the SMF report as 2fantasy economics and grossly irresponsible.2 It warned that a 40% MGD rate could devastate high streets and seaside towns by closing family-run businesses and pushing customers towards illegal gambling markets. Similarly, the Betting and Gaming Council (BGC) highlighted potential job losses and emphasized that betting shops 2keep high streets alive and provide valued community spaces.2
Players concerned about gambling harm may see increased protections if tougher regulations accompany the tax rise. However, there is also a risk that higher costs could drive some individuals towards unregulated or illegal gambling options. It remains important for players to stay informed about regulatory changes and to seek support if gambling causes harm.
For further information on UK gambling regulation and player protection, visit GamblingNews.today UK and Responsible Gambling.
Related developments in the gambling sector include a recent jackpot win at a Las Vegas airport slot machine, highlighting the ongoing popularity of slots worldwide (The Guardian), and ongoing regulatory scrutiny of gambling sponsorship in UK football (The Guardian).
Read the full report on the proposed tax changes at The Guardian: High-street slot machines and casinos could face a3460m tax rise under Burnham.
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- UK Think Tank Proposes Further Gambling Tax Increase - July 1, 2026
- UK High-Street Slot Machines Could Face £460m Tax Increase - June 30, 2026