Hundreds of slot-machine venues in England could retain a business rates discount intended for leisure and hospitality businesses because they hold bingo licences, the Guardian reported on November 1. The potential loophole could limit the reach of a budget measure excluding adult gaming centres from the relief.
The budget presented by John Healey also raised duty on slot-machine takings from 20% to 25%, affecting adult gaming centres, bookmakers and casinos. The question over bingo licences concerns the separate business rates measure, not that duty increase.
The Guardian’s examination of Gambling Commission records identified more than 200 arcades licensed for bingo despite appearing primarily focused on slots. Duplicate entries made an exact count difficult. The newspaper said many venues operated by Merkur and Admiral, Britain’s two largest slot-machine chains, could potentially retain the discount.
At four Merkur premises and one Admiral venue visited by the newspaper, bingo was advertised in the windows, but slot machines dominated inside. Bingo tablets occupied a small corner. At one location, a staff member said the tablets were never used, and they appeared not to work.
A bingo licence does not automatically determine eligibility for rates relief, according to Paul Turner-Mitchell, a business rates specialist at Altus Group. He said the outcome would depend on the Treasury’s definition of an adult gaming centre and councils’ enforcement.
Labour MP Alex Ballinger, a co-chair of Parliament’s cross-party gambling reform group, urged ministers to prevent licences being used to bypass the new rules and to advance proposals for tighter licensing. Merkur and Admiral did not respond to the Guardian’s requests for comment. Bacta president Joseph Cullis warned that the tax changes would put pressure on operators and investment.