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The UK Budget raises machine games duty from 20% to 25%, a change the Bingo Association says could make 77 of the country’s 239 bingo halls loss-making and put up to 1,200 jobs at risk. The figures are industry estimates; no closures or job losses have been confirmed. Rank Group says the increase will cost it £9 million and that it is considering mitigating actions.
Chancellor John Healey’s Budget increase in machine games duty from 20% to 25% has prompted warnings from the bingo industry that 77 of the UK’s 239 halls could become loss-making and up to 1,200 jobs could be at risk. Those figures are estimates from the Bingo Association, not confirmed closures or redundancies; the tax change applies to slot machines as part of a wider gambling-tax measure.
The Bingo Association’s chief executive, Nicole Garrett, said the higher levy would leave 77 halls in the association’s estimate of the national estate unable to make a profit. She said that would “inevitably mean closures” and put as many as 1,200 jobs at risk. The association did not identify which halls would close or give a timetable for potential decisions.
The Budget measure is expected to raise £145 million a year, according to the report. Healey said the proceeds from the increase would support firms in retail, hospitality and leisure. The government’s stated rationale for raising the duty is to clamp down on gambling harm and adult gaming centres, including venues that can operate around the clock.
Rank Group, which owns Mecca Bingo and Grosvenor Casinos, said the change would cost it £9 million. The company said it was “undertaking mitigating actions”; the report says those actions could include closures and job losses, but Rank did not confirm that either would occur. Buzz Bingo had warned before the Budget that a rise to 25% could leave around a third of its estate loss-making, suggesting about 25 of its nearly 80 halls could face pressure.
Pressure on Bingo Halls and Jobs
The warning matters because bingo halls depend in part on revenue from slot machines, which will face the higher duty. If operators cannot offset the added cost, some locations may become less viable, with possible consequences for local employment and access to venues. The number of jobs at risk is an industry estimate, not a confirmed count of planned redundancies.
The dispute also concerns how the government defines and taxes different forms of leisure. Bingo representatives argue that halls provide a social setting, including for older customers and people who may otherwise have limited contact with others. The Budget’s stated aim is to address gambling harm and direct funds towards other leisure-related businesses; the available report does not set out how that support will be allocated or whether bingo operators can receive it.
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How the Duty Reaches Bingo
Machine games duty (MGD) is levied on gaming machines. The Budget raises its rate from 20% to 25%, affecting machines in bingo halls as well as other venues. The measure follows warnings from bingo operators before the Budget that a higher rate could harm their businesses.
Garrett also pointed to a recent policy change in the opposite direction: former Chancellor Rachel Reeves abolished the 10% bingo duty, which the association had taken as recognition of the sector’s wider contribution. Garrett said the new treatment of machine revenue felt like a change in direction. That is the association’s assessment; the Budget’s stated purpose for the MGD increase is to address gambling harm and fund support for retail, hospitality and leisure.
Slot machines are not confined to bingo halls: the report says they also generate revenue in pubs, working men’s clubs and seaside arcades. Buzz Bingo chief executive Dominic Mansour described machines at bingo clubs as an occasional activity between games, rather than something customers necessarily use for extended periods. His description reflects the company’s case against the tax increase, not an independent assessment of gambling behaviour.
“The mood is very, very bad today. People are really disappointed.”
— Nicole Garrett, chief executive of the Bingo Association
Closures and Redundancies Unconfirmed
The 77-hall and 1,200-job figures are warnings from the Bingo Association about potential effects, not an announcement that those venues will close or those workers will lose their jobs. The report does not name the sites or specify when they might become unviable.
Rank has disclosed an estimated £9 million cost and said it is taking mitigating action, but has not confirmed the nature or outcome of that response. The report also does not give a breakdown of the £145 million expected annual revenue by sector, explain how support for retail, hospitality and leisure will be distributed, or state whether bingo businesses can benefit from it. The final effects will depend on operators’ finances and any actions taken after the duty change.
Operators Weigh Their Responses
Operators are expected to assess how the higher duty affects their machine revenue and individual venues. Rank’s stated mitigating actions may clarify whether it plans operational changes, but no closure or job-loss timetable is provided in the report. The Bingo Association may also continue pressing the government over the impact on halls and their employees.
The next concrete developments to watch for are company announcements identifying any changes to sites or staffing, and further information from the government about how the Budget proceeds will support retail, hospitality and leisure. Until operators make decisions public, the scale of any effect on halls and jobs remains uncertain.
Key Questions
What did the Budget change?
It raised machine games duty from 20% to 25%. The measure applies to gaming machines and is intended, according to the report, to address gambling harm and raise money for support for retail, hospitality and leisure.
Are 77 bingo halls confirmed to close?
No. The Bingo Association says 77 of 239 halls could become loss-making. That is an estimate of financial risk, not confirmation that the venues will close.
Are 1,200 bingo jobs being cut?
No job cuts have been confirmed in the report. The up to 1,200 jobs at risk figure is an estimate given by the Bingo Association.
How much could the tax change cost Rank Group?
Rank Group says the tax increase will cost it £9 million. It has said it is taking “mitigating actions,” without confirming whether those will involve closures or job losses.
How much is the tax rise expected to raise?
The report says the increase is expected to raise £145 million a year. It does not provide a detailed breakdown of how the proceeds will be allocated.
Source: thisismoney.co.uk
