UK adult gaming centres face £460m tax rise

All-night slot machine shops and casinos could face a £460m tax rise if a future Labour government increases machine games duty on adult gaming centres, according to a report released Monday by the Social Market Foundation. The thinktank found that 43% of the public would support any move by a future Labour administration to raise taxes affecting these centres, which offer a £2 slot machine spin every 2.5 seconds.

The sector's rapid growth has brought record takings for operators, according to official figures released last year by the Gambling Commission.

Tax proposal details Doubling machine games duty from 20% to 40% could increase the tax take from Category B £2-a-spin slot machines by between £275m and £458m, on top of the £600m they currently pay, the report stated. The plan would hit casinos as well as the adult gaming centre sector's largest companies.

Bookmakers would also be affected, a side-effect that is thought to have deterred the current chancellor from the move after concerns were raised by the horse racing industry. The proposal would leave lower-stakes category C and D fruit machines in pubs untouched.

Industry response Bacta, the trade body for adult gaming centres and amusement arcades, said the report was fantasy economics and grossly irresponsible. It predicted that the proposed increase would reduce the tax take and cost jobs. A 40% rate would devastate high streets and seaside towns, close responsible family-run businesses and risk pushing customers away from safe, regulated environments towards the illegal market, the trade body stated.

The Betting and Gaming Council said any increase in machine games duty would cost jobs, adding that betting shops keep high streets alive and provide valued community spaces.