New Tax Increase on Slot Machines in the UK

UK Chancellor John Healey brought a new tax burden on the gambling sector with the budget he announced on 28 October. The tax on land-based machines, the most played machines in the country, will rise from 20% to 25%.

The government plans to raise the business rates relief for small businesses from 12,000 pounds to 18,000 pounds. It aims to cover the cost of this support with the additional tax on gambling machines. Healey said pubs and seaside amusement arcades will not be affected by this increase. The measure only covers high-stakes machines.

Category B machines, meaning slots and electronic roulette, are among the most common types. On B2, B3, B3A and B4 machines, the maximum stake is 2 pounds. On Category B1 machines, this limit is 5 pounds. On Category C and D machines, stakes are limited to 1 pound, and the tax rate on these machines remains at 15%. Category A machines are currently not permitted in the UK, but if they were introduced, they would be subject to a 25% tax.

Stella David, CEO of Entain, described the decision as disappointing. She said previous tax increases had negative effects on employees, communities and customers, and argued that the new changes would push players towards the illegal market. The company, which owns Coral, Ladbrokes and PartyPoker, estimates that the new rate will cost about 25 million pounds a year. It said it will try to protect its premises and jobs.