Slot arcades may avoid business rates change through bingo licences
Many arcades in England that are filled mainly with slot machines may be able to avoid a tax change announced in the Budget, because they hold bingo licences, according to an investigation by The Guardian, published on 1 November 2026.
Under the changes, adult gaming centres and vape shops in England would no longer be eligible for a business rates discount aimed at leisure and hospitality businesses. Business rates are a local tax paid by businesses on the buildings they occupy. Adult gaming centres are licensed venues where adults can play gaming machines.
The difference lies in the licence. Adult gaming centres are allowed up to four machines of a category known as B3, while bingo premises can have up to eight. Gambling Commission records show more than 200 arcades licensed as bingo venues, including the Merkur Slots shop in Stockport, the Guardian reported.
The Guardian visited four Merkur-owned venues and one Admiral-owned venue. All five advertised bingo in their shop windows, but appeared to offer mainly slot machines inside. Bingo was available only on tablets stacked in one small corner of the room, and staff at one venue said nobody had ever used the tablets. The slot machines offered a £2 spin every 2.5 seconds for a £500 jackpot.
The Guardian's analysis suggests that many shops owned by Merkur and Admiral, which it describes as the UK's two largest slot farm companies, could escape the business rates change. "Slot farm" is a term for arcades dominated by slot machines.
Separately, Chancellor John Healey raised duty on slot machine takings from 20 per cent to 25 per cent in his first Budget, according to the Guardian. Machine Games Duty is a tax on the net takings from some slot machines, as Reuters has reported.
The same investigation reported that Merkur was fined £100,000 after the Guardian revealed details of the case of Wendy Hughes. Hughes had terminal cancer and lost £2,000 over two spells lasting 16 hours at the Merkur Slots shop in Stockport.
Alex Ballinger, a Labour MP and co-chair of the all-party parliamentary group on gambling reform, has urged the government to ensure that licences cannot be used to sidestep the new business rates rules.
