Politics1 min read

How £100 vanishes in minutes: inside the ‘slot farms’ targeted in the budget

By · Via The Guardian Business · Published by Everything Blog

In short

The tax increases machine games duty from 20% to 25%, hitting venues dominated by operators Admiral and Merkur that frequently run 24 hours a day under bingo licences. These centres rely on category B3 terminals that can rapidly absorb player funds while yielding revenues that surpass the median British worker's annual wage. Operators keep patrons engaged using perks like free snacks, comfortable seating, and on-site cash facilities despite facing intense criticism over problem gambling. Industry operators argue that the increased financial burden will ultimately trigger widespread shop closures.

Key points

  • The duty increase aims to divert gaming venue profits into broader high street economic g…: The duty increase aims to divert gaming venue profits into broader high street economic growth.
  • Bookmakers and operators warn the five percent tax rise will hurt profits and force store…: Bookmakers and operators warn the five percent tax rise will hurt profits and force store closures.
  • Critics stress that 24-hour adult gaming centres target deprived areas with aggressive ta…: Critics stress that 24-hour adult gaming centres target deprived areas with aggressive tactics that drive severe problem gambling.

Sources checked by our analysis pipeline: 1

The last of five £20 notes disappears into the slot machine as The Verve’s Bittersweet Symphony plays over the shop’s sound system.

That’s it, £100 gone in the space of about five minutes, swallowed up by one of the many “slot farms” that dominate the shopping streets of Peterborough.

All that’s left to show for it is a free KitKat, one of the incentives staff use to tempt customers into staying a little longer and losing a little more.

It’s lunchtime on a Thursday and dozens of glassy-eyed hopefuls are having the same experience, feeding in what little cash they have and cursing as it disappears.

The same pattern is repeated across the country. Gamblers in Great Britain lost £2.7bn on slot machines last year, nearly double the annual budget of the Department for Culture, Media and Sport, which oversees the sector.

In his inaugural budget this week, the chancellor, John Healey, took direct aim at slot machines by raising “machine games duty”, the tax levied on them, from 20% to 25%. This, he said, would bring in nearly £150m…

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