button in SafariBritish Slots Operators Face Another Gaming Tax Hike
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Chancellor John Healey set out the government's tax and spending plans in his Budget on October 28, and once again the gaming industry faces a tax hike. Healey had gambling machines, including slots, firmly in his sights as he increased taxes on the United Kingdom's most-played land-based machines from 20% to 25%.
Healey unveiled plans to increase the small business rate relief for retail, hospitality, and leisure businesses from £12,000 to £18,000. However, the money lost from that scheme needed to be recouped from somewhere, and that somewhere was Category B gambling machines.
"To pay for this support of our high streets, I'm raising taxes on gambling by increasing Machine Games Duty from 20% to 25% for higher stakes machines, whilst protecting pubs and seaside arcades."
What Are Category B Gaming Machines?
So-called Category B gaming machines are the most common slots, electronic roulette games, etc, players find in Adult Gaming Centres, casinos, and some public houses.
Five types of Category B machines exist. Four of them, B2, B3, B3A, and B4, have their stakes capped at £2 per play. Until April 2019, these machines allowed players to stake up to £100 per spin, but the UK Gambling Commission changed its rules.
Category B1 machines have a maximum stake of £5. There are other rules regarding these machines, such as being capped at 150 machines in large casinos and requiring a 5:1 ratio relative to other machine categories in venues that offer them.
Machines falling under Categories C and D have a maximum stake of £1. These are commonly found in arcades in seaside towns and in public houses throughout the UK. Their Machine Gaming Duty remains at a lower 15%.
Although not currently permitted in any UK venue, Category A would also be taxed at 25%. Such machines have unlimited stakes and prizes.
Coral and Ladbrokes Owner Disappointed By Tax Hike
Stella David, the CEO of Entain, owners of Coral, Ladbrokes, and PartyPoker, commented on a statement to Entain's shareholders.
"This is another disappointing decision by the Government. The previous gambling tax increases announced in November last year have already had detrimental consequences across the industry, with the effects being felt by employees, communities, and customers. These additional tax changes will further compound that damage and push more people into the growing illegal market."
"We will continue to work hard to limit the impact of these changes on our business, our people, and the communities in which we operate. Our priority is to protect jobs wherever possible whilst supporting a sustainable retail presence on UK high streets."
The same statement reveals Entain estimates the new tax rate will cost them in the region of £25 million annually.
