Britain’s bingo halls and casinos face potential closures and job losses if the government raises taxes on slot machines in the upcoming budget, industry leaders have warned. The speculation surrounds a planned increase in the machine games duty, a tax applied to devices such as slot machines, electronic roulette, and fruit machines used in venues across the country.

Richard Harris, chief executive of Rank, which operates Mecca Bingo and Grosvenor Casinos, cautioned that hiking the duty to 40 percent could be “reckless” for land-based gambling businesses. The company relies heavily on revenue from these machines, which generate approximately £113 million annually—about 30 percent of its total sales. Rank employs around 7,500 people, with 6,500 based in the UK.

The Social Market Foundation estimates that raising the machine games duty to 40 percent on category B machines, found in casinos, adult gaming centres, betting shops, bingo halls, and social members’ clubs, could yield up to £458 million in additional government revenue. However, Harris argues such an increase would add roughly £35 million per year in costs for Rank alone, forcing venue closures and staff reductions due to the fixed nature of property and employment expenses that these brick-and-mortar businesses face.

Harris also noted that a rise in taxes could ultimately reduce government revenue overall, as closures would lead to losses in other forms of taxation such as business rates and employers’ national insurance contributions. Supporting these concerns, research by EY, commissioned by the Betting and Gaming Council, indicated that a 40 percent increase in machine games duty could result in the closure of up to 34 of the UK’s 108 casinos.

Some policymakers, including Andy Burnham, have expressed opposition to gambling establishments, particularly adult gaming centres, which operate as 24-hour venues allowing unrestricted access to slot machines. Burnham has linked such outlets to the decline of British high streets and has been reported as targeting them in fiscal discussions.

A Treasury spokesperson stated that decisions on taxation remain at the discretion of the chancellor and will be announced at forthcoming fiscal events. The budget is scheduled to be unveiled on October 28. As the government weighs the potential revenue gains against the possible economic and social impacts on the gambling industry and local employment, the debate over taxation levels and regulation continues.