UK Slot Machine Arcades May Evade Budget Tax Hike Via Bingo Licences
Hundreds of adult gaming centres across England holding bingo licences could bypass new business rates changes introduced in the recent budget.
At a glance
- Chancellor John Healey increased slot machine duty from 20% to 25% and removed business rates relief for adult gaming centres.
- Guardian analysis suggests hundreds of arcades run by firms like Merkur and Admiral hold bingo licences while operating mostly slot machines.
- Industry representatives warn the tax changes will harm operators, while MPs urge the government to tighten licensing regulations.
Hundreds of adult gaming venues across England could bypass new business rates rules introduced in the recent budget by maintaining bingo licences.
Chancellor John Healey announced an increase in slot machine duty from 20% to 25% and stripped leisure and hospitality business rates relief from adult gaming centres, drawing praise from Prime Minister Andy Burnham.
How the licensing loophole operates
Analysis indicates that many venues owned by major slot arcade operators Merkur and Admiral hold bingo licences despite featuring almost exclusively slot machines.
Visits to multiple shops revealed that while bingo was advertised externally, it was restricted to a few tablet devices in a corner, with staff at one location noting the tablets were rarely used or non-operational. The rest of the floor space was dedicated to high-stakes category B3 slot machines.
Calls for tighter regulatory oversight
Labour MP Alex Ballinger praised the duty increase but urged ministers to prevent businesses from sidestepping the new rates through licensing loopholes, pointing to an ongoing consultation by the Department for Culture, Media and Sport.
Paul Turner-Mitchell, a business rates expert at Altus Group, noted that a bingo licence alone does not automatically determine business rates treatment, as outcomes will depend on Treasury definitions and council enforcement.
Industry concerns over budget changes
Merkur and Admiral did not respond to requests for comment regarding the licensing setup.
Joseph Cullis, president of the arcade trade body Bacta, stated that the tax increases would heavily impact the sector, forcing both family-run businesses and larger operators to scale back investments and reconsider their futures.
Assessing the impact of tax and licensing rules
The overlap between taxation policy and local licensing reveals potential vulnerabilities in government efforts to reform high street gambling rules. Discrepancies in how licences are classified threaten to create uneven enforcement across local authorities.
The effectiveness of the budget measures will depend heavily on whether regulators and local councils coordinate to close loopholes between slot machine arcades and traditional bingo halls.
What to watch: The Department for Culture, Media and Sport response to licensing consultation proposals.
Reporting from: The Guardian. Spotted an error? Tell us.
- Gambling
- Taxation
- High Streets
- Business Rates
- United Kingdom
- Politics