SMF Report Highlights Public Backing for Machine Games Duty Increase on High-Street Venues
The Social Market Foundation has released findings from its recent polling and modelling exercise that place 43 percent of the public in favour of doubling machine games duty on adult gaming centres and casinos from the current 20 percent rate to 40 percent. This adjustment would apply specifically to physical high-street locations that operate Category B £2 stake machines, a sector that remained outside the scope of the earlier remote gaming duty changes implemented for online operators. Current annual receipts from these machines stand at approximately £600 million, and the proposed rate increase is projected to deliver between £275 million and £458 million in additional revenue each year. The calculations rest on data gathered by the think tank and reflect the scale of machine gaming activity recorded across adult gaming centres and casino floors nationwide. Observers note that the proposal arrives at a moment when land-based venues continue to face different tax treatment compared with their remote counterparts, a distinction that has persisted since the remote gaming duty adjustment took effect. The SMF analysis positions the measure as a way to align contributions from physical sites more closely with those already required from digital platforms.Details of the Proposed Duty Change and Revenue Modelling
The report sets out a straightforward mechanism: machine games duty would rise from 20 percent to 40 percent on all relevant machines located inside adult gaming centres and casinos. Category B machines carrying a £2 maximum stake form the core of the revenue base under examination, and the modelling applies the higher rate across the existing estate of such devices. Figures supplied by the SMF indicate that the additional yield could range from £275 million to £458 million annually once the new rate is fully operational. These estimates incorporate variations in player volumes and machine utilisation rates drawn from industry data, while holding other duty streams constant. The polling component asked respondents directly about support for the tax rise, producing the 43 percent figure in favour. The survey did not include questions on alternative uses for the proceeds or on broader gambling policy, keeping the focus on the specific duty adjustment.Focus on Physical Venues and Comparison with Remote Sector
Adult gaming centres, often referred to as slot sheds, together with traditional casinos, have operated under the lower 20 percent machine games duty while remote operators faced the increase to 40 percent on remote gaming duty from April 2026 onward. The SMF report underscores this disparity and models the effect of applying the higher rate to the land-based segment that escaped the previous change. Data from the report shows that the physical venues generate the £600 million baseline from Category B machines, a sum that would expand under the proposed doubling. The analysis does not extend to online slots or other remote products, maintaining a clear boundary around high-street operations.
Those who have examined the figures point out that the duty applies only to the machines themselves rather than to table games or other casino offerings, narrowing the scope of the projected revenue gain. The report therefore isolates the impact on machine gaming activity within the targeted venues.