UK Slot Farms May Dodge Budget Tax Hike via Bingo Hall Loophole
Adult gaming centres could sidestep a new 25% duty by exploiting bingo licences that grant discounted business rates, experts warn.
Hundreds of high street adult gaming centres across England may be able to avoid the full impact of a new gambling tax increase announced in the latest UK budget, thanks to a legal loophole that allows them to operate under bingo hall classifications and claim discounted business rates.
Chancellor John Healey specifically targeted adult gaming centres — commonly referred to as slot farms — when he raised the duty on slot machine takings from 20% to 25%. Healey framed the move as a measure aimed at supporting broader economic growth on British high streets, but critics and industry watchers say the policy has a significant gap.
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The loophole centres on bingo licences that many adult gaming centres already hold. Under current rules, those licences qualify establishments for reduced business rates typically reserved for legitimate bingo halls — a classification that carries meaningfully lower overhead costs and could offset the newly imposed duty increase.
Unless the government moves to close the exemption, the tax hike may fall unevenly across the sector, with some operators effectively shielded from its financial consequences. The situation raises questions about whether the budget measure will achieve its stated goal of rebalancing economic activity on high streets, or whether it will simply reward businesses that have structured themselves to exploit legacy licensing categories.
The government has not yet indicated whether it plans to address the bingo licence classification as a follow-up measure. Continue reading at Business | The Guardian
