Operators Leverage Bingo Licenses Amid Machine Games Duty Adjustments

The UK Budget delivered by Chancellor John Healey introduced an increase in Machine Games Duty from 20% to 25% on slot machine takings, with the change scheduled to take effect in April 2027 and aimed specifically at adult gaming centres often referred to as slot farms.

Operators including Merkur and Admiral have responded by maintaining bingo licences at hundreds of venues that focus primarily on high-stakes Category B3 machines, which allows these sites to sidestep the duty rise while preserving eligibility for business rates discounts.

Details of the Regulatory Approach

Guardian analysis of records from the Gambling Commission shows more than 200 arcades registered under bingo hall categories, and on-site visits have confirmed that many of these locations operate with slot machines as the dominant offering despite the bingo designation on their licences.

People who track licensing patterns note that this setup relies on the fact that bingo-licensed premises fall outside the scope of the Machine Games Duty adjustment, even when the actual floor space and revenue come overwhelmingly from slots rather than traditional bingo play.

Scale of the Practice Across Venues

Data indicates that the loophole affects a substantial portion of the adult gaming centre sector, with operators able to retain existing tax advantages at sites that continue to generate the majority of income through Category B3 machines.

Those who have examined venue registrations point out that the dual licensing structure predates the recent Budget announcement yet gains new relevance as the April 2027 date approaches, particularly in locations where high-street footfall supports heavy slot usage.

Figures reveal that over 200 such sites now hold bingo licences while functioning as slot-focused operations, and this number reflects a pattern identified through cross-referencing of official records with physical inspections.

Connection to Broader Licensing Rules

Under current regulations, premises holding bingo licences can offer a limited number of gaming machines without triggering the higher duty rate that now applies to standalone adult gaming centres, and operators have aligned their venue portfolios accordingly.

Observers note that business rates relief tied to bingo status further incentivises the approach, because the discount remains available even as slot revenue constitutes the core business activity at many of these addresses.

Records maintained by the Gambling Commission provide the data foundation for identifying these registrations, and analysts have used that information to map the distribution of affected sites nationwide.

Preparation Timeline as April 2027 Nears

With the duty increase set for April 2027, operators have already begun adjusting licence holdings in the period leading into late 2026, and November 2026 marks a point where such preparations continue across multiple chains.

Venues that switched or retained bingo designations earlier now operate under the same framework, which separates them from the new tax obligations that will apply to non-bingo adult gaming centres once the change takes effect.

Conclusion

The situation centres on the interaction between Machine Games Duty changes and existing bingo licensing pathways, with Guardian analysis establishing the presence of more than 200 qualifying sites through records and direct verification.

Operators continue to manage their portfolios under these rules as the April 2027 implementation date draws closer, and the structure remains available within the framework set by current gambling legislation.