The UK Treasury is considering a Machine Games Duty increase on slot machines ahead of the 28 October budget. Officials are modelling revenue scenarios for different rate hikes, The Times reports.
The current rate stands at 20% on category B machines with a maximum stake of £2 every 2.5 seconds. Social Market Foundation has proposed raising it to 40%. Chancellor John Healey must find billions to cover defence spending and social measures. A government source told the paper that 'tax rises on gambling are back on the table'.
Former chancellor Rachel Reeves also looked at a slot tax increase but ultimately raised the online levy instead. Remote Gaming Duty for digital casino rose to 40% in April, a move already linked to the closure of more than 600 betting shops and the loss of 5,000 jobs by the end of next year.
Betting and Gaming Council opposes the hike. It would hit betting shops, casinos and gaming halls, push traffic to the black market and devastate high streets, the trade body argues. A BGC spokesperson noted that closures are not solely tax-driven: energy costs, national insurance contributions and the long-term shift online have all played a part.
Prime Minister Andy Burnham has turned his attention to Adult Gaming Centres. He recently announced plans to scrap the 'aim-to-permit' principle in licensing. Regulus Partners warns that doubling the duty may yield no revenue at all if it triggers mass closures.
