Licence loopholes and business rates
Chancellor John Healey increased duty on slot machine takings from 20% to 25% in his recent budget and removed business rates discounts for adult gaming centres and vape shops in England. However, analysis indicates that venues owned by major operators such as Merkur and Admiral could potentially sidestep these measures because they hold bingo licences. Gambling Commission records suggest that over 200 arcades operate under bingo licences despite featuring slot machines almost exclusively. Visits to multiple venues operated by Merkur and Admiral showed that bingo was restricted to tablets in a corner while the rest of the floor was dedicated to category B3 slot machines offering £2 spins for a £500 jackpot.
Regulatory oversight and industry response
Alex Ballinger, co-chair of the gambling reform all-party parliamentary group, urged the Department for Culture, Media and Sport to tighten licensing rules through ongoing consultations to prevent venues from using bingo licences to avoid new business rates regulations. Paul Turner-Mitchell, a business rates expert at Altus Group, noted that a bingo licence alone does not determine business rates treatment, with the final outcome depending on Treasury definitions and local council enforcement. Joseph Cullis, president of trade body Bacta, stated that the tax changes would force family-run and larger operators to reconsider investments and scale back plans. Merkur and Admiral did not respond to requests for comment.