UK gaming machine tax rises to 25% — The Guardian

In the United Kingdom, Chancellor John Healey raised the tax on gaming machines from 20% to 25%. In his estimate, this decision will bring in nearly £150 million annually. The increase became part of the budget and, according to Healey, is intended to increase taxes on the gambling industry to support the development of high streets.

As The Guardian reports, the country’s most widespread Category B3 machines allow bets of up to £2 every 2.5 seconds and offer jackpots of up to £500. During the publication’s test, £100 was lost in around five minutes. On average, one such machine generates about £40,000 per year.

Player losses and venue operations

Last year, players in the United Kingdom lost £2.7 billion on slot machines. The machines are installed in betting shops, casinos and bingo halls, but they are especially numerous in adult gaming centres, which critics call “slot farms”.

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According to the publication, such venues often operate around the clock and are disproportionately located in less affluent areas. Visitors are offered drinks, snacks, prize draws and free spins, as well as the option to withdraw cash from a bank account without leaving the premises. Admiral introduced a restriction on playing two machines simultaneously, explaining it as a measure to reduce gambling harm.

Operators’ response

Bookmaking companies say the tax change will increase their costs and could lead to venue closures. Entain, the owner of Ladbrokes, expects an impact of £25 million. At the same time, following the budget announcement, shares in Entain, Evoke and Rank Group rose.

Adult gaming centres will also be excluded from business rates relief along with vape shops; according to the chancellor’s estimate, this will cost these sectors a combined £10 million. Industry association Bacta said its venues have experienced staff and built-in tools for safer gambling and self-exclusion.