Bingo Halls and Arcades Braced for Closures After Budget's Tax Hike
05 November 2026
Bingo halls and amusement arcades are warning they could be forced to shut their doors after the Treasury raised gambling taxes in the recent Budget.
The row erupted after 90 Labour MPs wrote to Chancellor John Healey calling for an increase in machine games duty (MGD) on Category B machines. These include popular slot, fruit and quiz machines that dispense cash prizes.
Industry groups say the extra tax burden from the 5% hike could tip dozens of family-run halls and local arcades into the red, jeopardizing gambling sector jobs.
"Even a 5% rise in machine games duty could put 40% of our bingo clubs into a loss-making position," said Sarah Calakovic, regional manager at Buzz Bingo. "It's not sustainable long-term."
The Bingo Association made similar warnings last month after the Budget unexpectedly decided to raise the duty from 20% to 25%. The move threatens 77 of Britain's 239 bingo halls and puts as many as 1,200 jobs at risk, the Association said.
Casino operator Rank Group said it alone will pay an extra £9 million a year, on top of the surplus stamp it already contributes to a fund to help people gamble ethically.
The Association had previously modelled a more extreme 20% to 40% duty doubling. That, it argued, would force 102 clubs into the red, highlighting the existing razor-thin margins at many sites.
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The estimate is based on official government figures that found Category B machines already generate £577 million a year in tax. A 20% to 40% doubling would equate to a £115.4 million annual increase.
However, the levy's critics tend to focus more on its sweeping effect on other leisure sectors than on its revenues. Many high street bingo halls, for instance, run cafe bars, bingo for older residents, and walking groups.
Peter Kooter, the SMF's head of health and well-being policy, said the funding shortfall arises because of the "huge range of support and harm-prevention services that local authorities, NHS trusts, voluntary groups and other organisations provide in response to gambling-related harms."
Unsurprisingly, then, a Treasury spokesperson said it would not comment on speculation. The department's note accompanying the Budget said the MGD increase would yield £145 million a year.
The broader problem, say some in the industry, is that the state has also used gambling taxes to shore up struggling theatres, cinemas and museums. Meanwhile, cocking up bingo hall owners with higher outlays could merely push activity online, beyond the regulatory gaze.