UK high-street slot machines and casinos face potential £460m tax hike under Burnham
A thinktank proposes doubling Machine Games Duty to raise up to £458m extra, targeting adult gaming centres that have proliferated on high streets. Backed by Andy Burnham, the plan faces opposition from the gambling industry.
High-street slot machine shops and casinos could see a £460 million tax rise if Andy Burnham acts on his concerns about the gambling industry as prime minister, after the Social Market Foundation (SMF) thinktank found the policy would have public support.
Known as “slot sheds”, adult gaming centres (AGCs) have flooded UK high streets in recent years, disproportionately targeting economically deprived areas. While online casinos faced a tax increase in Rachel Reeves’s November budget, duty on physical slot machines was left untouched.
Burnham is widely tipped to oust Reeves as chancellor if he becomes PM. He has previously condemned AGCs for exploiting vulnerable people and backed a proposal to end the two-child benefit cap by taxing the gambling industry more.
SMF polling shows 43% of the public would support a tax rise on AGCs. Doubling Machine Games Duty (MGD) from 20% to 40% could increase tax from Category B £2-a-spin machines by £275m to £458m on top of the £600m already paid. The plan would hit casinos, large AGC operators like Admiral and Merkur (fined for exploiting a terminally ill addict), and bookmakers—a side-effect that deterred Reeves due to concerns from the horse racing industry.
Lower-stakes Category C and D fruit machines in pubs would be exempt to protect the hospitality sector.
Bacta, the trade body for AGCs, called the report “fantasy economics”, predicting job losses and a shift to illegal markets. The Betting and Gaming Council (BGC) also warned of job losses, saying betting shops “keep high streets alive”.
Burnham has twice backed calls to give local authorities more power to stop new slot sheds. The 2005 Gambling Act introduced an “aim to permit” rule that forces licensing authorities to allow new gambling venues, even against local opposition. This rule has been criticised for tying councils' hands. The Devolution Act passed in April introduced “gambling impact assessments”, a milder measure also backed by Burnham, allowing councils to consider the number of existing premises.
In Bowes Park, Enfield, a campaign group opposes a new 24-hour Palace Amusements venue. Activist Rick Harrison noted there are already 18 gambling premises within 1.5 miles, and businesses fear increased crime. Godden Gaming, the operator, said the council does not identify the area as a gambling vulnerability zone and that it conducted a risk assessment.
