Budget raises tax on gambling centres as critics warn of risks to vulnerable people
Adult gaming centres, often called “slot farms”, are facing a tax rise as the government seeks to curb the costs of gambling and raise revenue. The article describes how customers can lose money rapidly on slot machines, and why critics say the centres’ locations and practices put vulnerable people at risk.
The chancellor has raised machine games duty from 20% to 25%, a change expected to bring in nearly £150m a year. Britain’s gamblers lost £2.7bn on slot machines last year, while popular B3 terminals allow stakes of £2 every 2.5 seconds for jackpots of up to £500. Each machine earns about £40,000 a year on average; centres may offer snacks, drinks and free spins, and some operate around the clock.
In short
- Gambling tax on machines rises to 25%.
- Slot machine losses reached £2.7bn last year.
- Critics say centres can encourage prolonged play.
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The strongest fair case each way — we don't pick a winner.
The case for
Raising the duty could make a highly profitable form of gambling contribute more to public finances while helping the government address gambling’s wider social costs. Given the rapid pace of play and the large losses reported, a higher tax may also signal that these businesses should face stronger scrutiny and could discourage some harmful gambling.
The case against
A sharp tax rise may burden adult gaming centres that operate legally and provide entertainment for customers who choose to use them, while its effect on harmful gambling is uncertain. If operators pass the cost on, cut services or close, the policy could threaten jobs and local businesses without addressing the factors that make some people vulnerable.
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Originally published by The Guardian as “How £100 vanishes in minutes: inside the ‘slot farms’ targeted in the budget”.