According to reports from The Times, UK Chancellor John Healey is considering increasing the tax on slot machines ahead of the government’s October Budget.
Treasury officials are looking at how much additional revenue could be raised by increasing Machine Games Duty, which currently applies to slot machines, electronic roulette, and fixed-odds betting terminals. The current rates are between 20% and 25%.
A government source shared with The Times:
“Increases in gambling taxes are definitely on the table again. Andy (UK Prime Minister) hates adult gaming centres. But, like all politicians, he loves bingo halls and pubs. They would probably need carve-outs if they do go after machine games duty.”
The potential increase comes as Healey faces pressure to raise funds for the October 28 Budget because the government is looking for revenue to cover higher defense spending and cost-of-living measures.
According to The Times, one option under consideration could see Machine Games Duty rise to 40%, with a Social Market Foundation report estimating that such an increase could generate up to £458 million for the Treasury.
The proposal could especially affect adult gaming centers, which rely on gaming machines. The Times reported that the government may consider different treatment for machines in pubs and bingo halls to limit the impact on those venues.
The Treasury hasn’t confirmed any changes to Machine Games Duty, with Healey also declining to comment on individual tax measures ahead of the Budget, saying speculation about future tax policy wouldn’t be productive.
