UK Government Considers Gaming Machine Tax Exemption For Bingo Halls

The UK government is reportedly considering changes to Machine Games Duty (MGD) that could protect traditional bingo halls from potential tax increases ahead of the Autumn Budget.

According to the Financial Times, the Treasury is examining proposals to raise taxation on higher-stakes gaming machines while limiting the impact on bingo clubs, pubs and seaside arcades. The reported approach would seek to generate additional revenue by focusing on selected machine categories rather than applying a uniform increase across the land-based gambling sector.

No final decision has been announced, and the government has yet to confirm whether bingo halls would receive a specific exemption or whether any protection would apply only to certain types of gaming machines.

Treasury Explores Targeted Machine Games Duty Increase

The proposals follow increased scrutiny of adult gaming centres (AGCs) and the wider role of gaming machines within Britain's high streets.

Research from the Social Market Foundation suggests that doubling Machine Games Duty on Category B gaming machines could generate between £275 million and £458 million in additional annual tax revenue. The figures represent estimates based on proposed changes rather than confirmed government revenue forecasts.

Machine Games Duty currently operates across three rates, with lower-stakes machines subject to a 5% rate, a standard rate of 20% and a higher rate of 25% applying to machines meeting the relevant maximum-stake criteria.

A targeted increase could involve raising duty on selected higher-stakes machines while maintaining existing rates for lower-stakes products commonly found in bingo halls, pubs and seaside amusement arcades.

However, the Treasury has not published detailed proposals establishing which machine categories or types of premises would be affected.

Bingo Halls Could Receive Additional Tax Protection

The possibility of exempting bingo halls from further increases follows the abolition of Bingo Duty from 1 April 2026.

Previously charged at 10% of gross gaming yield, Bingo Duty was removed as part of changes to gambling taxation intended to provide additional support for the land-based bingo sector.

However, the removal of Bingo Duty did not eliminate the separate tax obligations associated with gaming machines operated inside bingo clubs. These machines remain subject to Machine Games Duty under the applicable rates.

Consequently, a general increase in MGD could still create additional costs for bingo operators unless the government introduces specific protections or limits changes to particular machine categories.

The distinction is significant for bingo venues, many of which operate gaming machines alongside their traditional bingo offering. Any exemption would therefore depend on how the Treasury defines the affected machines and whether protection is linked to the type of venue or the characteristics of individual products.

Industry Warns Higher Taxes Could Threaten Jobs

The potential changes have prompted concerns from gambling industry representatives about the financial impact of additional taxation on land-based operators.

Industry estimates cited by the Financial Times suggest that a substantial increase in Machine Games Duty could contribute to the closure of approximately 1,470 betting shops and the loss of around 15,900 jobs.

These figures are industry projections rather than confirmed consequences, and the eventual impact would depend on the scale and structure of any tax changes.

Supporters of higher gaming machine taxation argue that the measures could provide additional public revenue while addressing concerns about higher-stakes gambling products. Former Prime Minister Gordon Brown has advocated increased taxation on gaming machines, with additional revenue potentially directed towards financial support for households facing higher energy costs.

The Treasury has not confirmed whether Machine Games Duty will increase, which operators would be affected or whether bingo halls will receive any formal exemption. Further clarity is expected when the government sets out its taxation plans in the Autumn Budget.