Recent budget measures raised machine duty to 25% and stripped adult gaming centres of their business rates relief in England. Analysis of Gambling Commission records reveals that more than 200 venues operated by chains like Merkur and Admiral utilise bingo premises licences despite primarily housing slot machines. In some of these locations, bingo is only offered via unused or non-functional tablets tucked into corners to maintain the designation. While arcade trade bodies warn the tax changes will curb investment, politicians are pressing the government to tighten regulations and seal the loophole.
Key points
Operators could increasingly convert high street gaming arcades to bingo licences to evad…: Operators could increasingly convert high street gaming arcades to bingo licences to evade the government's budget tax measures.
Arcade trade body Bacta warned that the higher rates and machine taxes will force operato…: Arcade trade body Bacta warned that the higher rates and machine taxes will force operators to cut back on business investments.
The ultimate success of the tax change depends on how the Treasury defines adult gaming c…: The ultimate success of the tax change depends on how the Treasury defines adult gaming centres and how councils enforce regulations.
Sources checked by our analysis pipeline: 1
Hundreds of high street “slot farms” could continue claiming a discount on their business rates, unless the government closes a loophole that allows them to pose as bingo halls.
John Healey singled out adult gaming centres (AGCs) in his first budget this week, in which he increased duty on slot machine takings from 20% to 25%, claiming he was “raising taxes on gambling to support good growth on every high street”.
As well as raising the duty, which will also affect bookmakers and casinos, he said AGCs and vape shops in England would no longer be eligible for a discount on business rates aimed at leisure and hospitality businesses.
The prime minister, Andy Burnham, has been a vocal critic of AGCs and posted on Instagram after the budget to back the policy, a key plank of his pitch to improve British high streets.
However, many shops owned by the UK’s two largest slot farm companies, Merkur and Admiral, could escape the tax tweak, Guardian analysis suggests.
This is because they have obtained bingo licences for venues that appear to offer…
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