Gaming centers face tax hike scrutiny amid bingo loophole concerns

However, analysis suggests that many AGCs owned by major companies like Merkur and Admiral could circumvent the tax change by obtaining bingo licenses for venues primarily offering slot machines. Gambling Commission records indicate hundreds of such venues may be exploiting this practice.

Investigations revealed that AGCs displaying bingo promotions in their windows often feature predominantly slot machines, with bingo games relegated to a small corner and sometimes appearing non-functional. One staff member reportedly stated that the bingo tablets were unused. These venues primarily offer Category B3 slot machines, which have been linked to higher levels of gambling-related harm.

The situation has drawn attention due to cases like that of Wendy Hughes, who lost £2,000 at a Merkur Slots shop in Stockport before her death from terminal cancer. Merkur was previously fined £100,000 for exploiting Hughes. Numerous arcades, including the Stockport branch, are licensed as bingo venues despite their focus on slot machines.

Operators may now attempt to convert their AGC licenses to bingo, further complicating the issue. Alex Ballinger, co-chair of the gambling reform all-party parliamentary group, welcomed the tax increase but emphasized the need for government vigilance regarding the loophole. He urged the Department for Culture, Media and Sport to tighten licensing rules.

Paul Turner-Mitchell, a business rates expert, noted that the Treasury’s definition of an AGC and local council enforcement will be crucial. Bacta president Joseph Cullis expressed concern that the tax changes will negatively impact arcade operators, potentially forcing them to scale back investments and make difficult decisions. Merkur and Admiral declined to comment.