High street ‘slot farms’ could avoid budget tax rise through bingo hall loophole

By the Editorial Team · Monday, November 2, 2026

The UK government’s planned tax increases on slot machine revenues and removal of business rates discounts for adult gaming centres risk being undermined as many operators, including Merkur and Admiral, exploit a licensing loophole by registering venues as bingo halls. Lawmakers and experts urge swift regulatory reforms to close this gap, which could otherwise weaken efforts to curb gambling harms and support local businesses.

The UK government’s recent budget measures aimed at increasing taxation on gambling may face challenges due to a licensing loophole exploited by some operators of adult gaming centres (AGCs), according to recent analysis. Chancellor John Healey announced a rise in the duty on slot machine takings from 20% to 25%, alongside a plan to remove business rates discounts for AGCs and vape shops in England, targeting leisure and hospitality sectors. This policy is part of a broader effort to support local high streets and reduce gambling-related harm.

Despite these measures, many venues owned by Merkur and Admiral, the UK’s largest slot machine operators, appear to be circumventing the changes by operating under bingo licences. Gambling Commission records indicate that hundreds of slot machine premises have registered as bingo halls, allowing them to maintain business rates relief intended for leisure businesses. Visits to multiple locations owned by Merkur and Admiral revealed that while bingo was advertised publicly and made available on tablets in small corners of venues, the vast majority of the space was dedicated to slot machines.

At several such locations, bingo machines were either unused or reportedly not functioning, while the venues heavily focused on category B3 gaming machines, known for fairly rapid play cycles and associations with elevated gambling harms. One venue in Stockport, owned by Merkur, was previously fined £100,000 after reports emerged regarding the heavy gambling losses of a customer with terminal cancer who spent extensive hours at the site. This branch is one of over 200 venues that hold bingo licences despite predominantly offering slot machine gambling.

Labour MP Alex Ballinger, co-chair of the gambling reform all-party parliamentary group, welcomed the increase in slot machine duties but warned the government to address the licensing loophole to prevent operators from sidestepping new business rates rules. He called on the Department for Culture, Media and Sport to expedite proposals to tighten licensing frameworks, highlighting ongoing consultations aimed at closing these gaps.

Experts in business rates, such as Paul Turner-Mitchell from Altus Group, noted that the ultimate impact of the tax changes will depend on how the Treasury defines AGCs and how local authorities enforce regulations, stressing that holding a bingo licence does not automatically determine business rates liability.

Meanwhile, industry representatives expressed concern over the financial impact of the tax increases. Joseph Cullis, president of the arcade operators’ trade association Bacta, emphasized the challenges faced by family-run businesses within the sector, noting that the increased costs could force operators to scale back future investments and reconsider business strategies.

Neither Merkur nor Admiral responded to requests for comment on the matter. The government has yet to confirm specific enforcement measures targeting the licensing loophole, although officials have acknowledged awareness of the issue and indicated ongoing work with regulators to ensure compliance going forward.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.