Adult gaming centres (AGCs) and casinos on UK high streets could face a substantial tax increase of up to a3460 million if Labour leader Andy Burnham becomes prime minister and implements plans to raise duties on physical slot machines.
Adult gaming centres, often referred to as slot sheds, have proliferated across UK high streets in recent years, particularly in economically deprived areas. These venues offer fast-paced a32 slot machine spins every 2.5 seconds, attracting significant player activity. Despite recent tax hikes on online casinos, physical slot machines in AGCs have so far avoided similar increases.
The Social Market Foundation (SMF) thinktank released polling showing 43% of the public would support a Labour government raising taxes on AGCs. The SMF proposes doubling the machine games duty (MGD) from 20% to 40% on Category B a32-a-spin machines, which could generate an additional a3275 million to a3458 million in tax revenue on top of the a3600 million currently collected.
This potential tax increase would affect major operators in the sector, including companies like Admiral and Merkur, which have faced scrutiny for exploiting vulnerable gamblers. Casinos would also be impacted. Bookmakers might see indirect effects, a factor that reportedly contributed to Chancellor Rachel Reeves refraining from raising MGD previously due to concerns from the horse racing industry.
Lower-stakes fruit machines in pubs, categorized as C and D, would remain exempt from the proposed tax rise. This exemption aims to protect revenue streams for the hospitality sector, which relies on these machines as a source of income.
Andy Burnham has criticized AGCs for “targeting some of the most vulnerable in our communities,” emphasizing the need for tougher regulation to curb gambling-related harm. He has supported calls to grant local authorities greater powers to prevent new slot sheds from opening, challenging the existing aim to permit licensing rule introduced by the 2005 Gambling Act. This rule currently obliges councils to approve new gambling venues unless there is a compelling reason not to, limiting local control.
Industry bodies have pushed back against the tax proposal. Bacta, representing AGCs and amusement arcades, called the SMF report “fantasy economics and grossly irresponsible,” warning that a 40% MGD rate could devastate high streets and seaside towns by closing family-run businesses and driving players toward illegal gambling markets. The Betting and Gaming Council (BGC) also expressed concerns about job losses and the potential negative impact on community spaces, stating that betting shops “keep high streets alive and provide valued community spaces.”
Players should note that any tax increase could influence the availability and cost of high-stakes slot machines in physical venues. Changes might affect player access and the overall gambling environment on UK high streets. Additionally, increased tax revenue could be allocated to social programs, as previous proposals have suggested using gambling industry contributions to fund welfare initiatives.
For further information on UK gambling regulation and player protection, visit GamblingNews.today UK and Responsible Gambling.
Related coverage includes a recent case of a former UK lawmaker pleading guilty to cheating in a 2024 election betting scandal, highlighting ongoing concerns about integrity in gambling markets (CDC Gaming), and calls for tighter regulation of gambling sponsorship in football (The Guardian).
Source: Gambling | The Guardian.
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