Bingo licences could preserve tax breaks for slot machine arcades
The government plans to raise gambling duty on slot machine takings from 20% to 25% and remove adult gaming centres in England from a business rates discount for leisure and hospitality businesses. But hundreds of high street venues may retain the discount by holding bingo licences, despite appearing to focus mainly on slot machines.
Gambling Commission records indicate more than 200 arcades are licensed as bingo venues, though duplicated data makes the total uncertain. A Guardian visit to five Merkur and Admiral sites found bingo offered on tablets in a small area, while most of the space was given to slot machines; one staff member said the tablets were never used. An MP has urged ministers to close the loophole, and a business rates expert said the outcome will depend on Treasury definitions and council enforcement.
In short
- Slot machine duty is set to rise from 20% to 25%.
- Bingo licences may let some arcades keep a business rates discount.
- An MP is urging the government to close the loophole.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Keeping the discount for venues with bingo licences could recognise that they provide a leisure service and help protect jobs and high street businesses facing higher gambling duties and operating costs. If bingo is genuinely available, a licence may be a reasonable basis for eligibility, while clear rules and council checks can address venues that do not meet the intended criteria.
The case against
The discount is meant to support leisure and hospitality businesses, so applying it to arcades that mainly operate slot machines could undermine that purpose and give them an advantage over other businesses. Where bingo is only nominally offered, requiring meaningful bingo activity or excluding such venues would make the relief more consistent with its stated aim and help ensure public funds are targeted as intended.
Explained simply
Adult gaming centres are high street venues where customers play slot machines, while bingo clubs are licensed to offer bingo. Some businesses run arcades that hold bingo licences even when slot machines appear to be their main attraction. Business rates are taxes on premises, and eligible leisure and hospitality businesses can receive a discount.
The Treasury sets gambling duties and business rates rules, while councils apply business rates locally. The Gambling Commission licenses gambling venues and keeps records of their licences. Whether an arcade qualifies for a rates discount can depend on how the rules define a bingo venue and how councils enforce them.
The issue matters because tax rules can affect the cost of running these venues and the tax paid on gambling takings. It also raises questions about whether businesses with similar activities are treated under the same rules.
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Originally published by The Guardian as “High street ‘slot farms’ could evade budget tax rise through bingo hall loophole”.