UK Slot Machine Venues May Dodge Tax Hike via Bingo Loophole
Adult gaming centres with bingo licences could sidestep new business rates rules unless the government closes a tax exemption gap.
Hundreds of high street adult gaming centres in England may be able to avoid the financial impact of the government's latest gambling tax increase by exploiting a loophole that allows them to register as bingo halls, qualifying for discounted business rates.
Chancellor John Healey targeted adult gaming centres directly in this week's budget, raising the duty on slot machine revenues from 20% to 25%. Healey framed the measure as a way of generating tax income from gambling while supporting broader economic activity on high streets across the country.
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However, the effectiveness of that policy may be undercut by a pre-existing provision: AGCs that hold bingo licences remain eligible for the same reduced business rates historically extended to bingo halls, a category seen as a more community-oriented form of gambling. Critics argue the distinction has become largely meaningless in practice, given that many of these venues operate primarily as slot machine arcades.
The situation raises questions about whether Healey's budget measure will deliver the revenue and regulatory impact intended, or whether a significant portion of the industry will find shelter under outdated licensing classifications. Analysts note that without a deliberate legislative fix, the discounted rates available through bingo licensing could substantially offset the new duty burden for affected operators.
The government has not yet confirmed whether it intends to address the loophole directly, leaving the policy's real-world reach uncertain. Continue reading at Business | The Guardian
