SMF Poll Reveals 43% Back Doubling Machine Games Duty on High-Street Slots and Casinos

The Social Market Foundation released polling data this week that shows 43% of the public supports a Labour government increasing taxes on adult gaming centres and casinos through a doubling of Machine Games Duty from 20% to 40%. The proposed change targets Category B £2 stake machines and could raise between £275 million and £458 million each year on top of the existing £600 million collected from these devices, while leaving lower-stake machines found in pubs untouched. Data from the think tank indicates the measure would apply specifically to adult gaming centres often referred to as slot sheds along with traditional casinos. Current revenue from Machine Games Duty already contributes significantly to government coffers, and the SMF analysis projects the higher rate would generate substantial additional funds without affecting pub-based gaming terminals that operate at lower stakes.

Details of the Proposed Tax Increase

Figures released by the SMF outline how the duty hike would focus on machines where players can stake up to £2 per spin. Adult gaming centres and casinos house the majority of these Category B devices, and the think tank estimates the extra revenue would come directly from increased taxation on those venues. The proposal deliberately excludes machines in pubs, which typically feature lower maximum stakes and fall under different regulatory categories.

According to the polling, support for the tax rise stands at 43% among respondents, reflecting a segment of public opinion that backs higher levies on these specific forms of gambling. The SMF report ties this finding to ongoing discussions about fiscal policy and gambling regulation ahead of broader changes scheduled for 2026.

Connection to Andy Burnham and Policy Discussions

The polling release coincides with comments from Andy Burnham, who has previously criticised adult gaming centres for locating in areas with higher levels of vulnerability. Burnham's statements highlight concerns about the concentration of these venues and their potential impact on local communities. While the SMF data does not attribute the polling directly to any single politician, observers note the timing aligns with speculation about future policy directions under a Labour administration.

Regulatory and tax adjustments planned for 2026 form part of the wider context around this proposal. Government sources have indicated that changes to gambling taxation and oversight will take effect during that year, and the SMF analysis positions the Machine Games Duty increase as one possible component of those shifts.

Revenue Projections and Industry Scope

The SMF calculations show the current £600 million annual yield from Machine Games Duty on Category B machines, with the proposed doubling expected to deliver an additional £275 million to £458 million depending on player behaviour and machine usage patterns. These estimates focus exclusively on adult gaming centres and casinos, leaving pub machines exempt as part of the targeted approach.

Industry data indicates adult gaming centres operate thousands of these higher-stake terminals across the UK, while casinos maintain similar equipment alongside table games. The tax adjustment would therefore affect a defined portion of the gambling sector without extending to all forms of machine gaming.

Broader 2026 Regulatory Landscape

July 2026 marks a period when multiple gambling-related measures are set to come into force, including updates to tax structures and licensing requirements. The SMF polling appears against this backdrop, providing one data point for policymakers considering adjustments to Machine Games Duty. Government announcements have outlined plans for stake caps and enhanced player protections alongside fiscal changes, creating a comprehensive package of reforms.

Those tracking the sector note that adult gaming centres have faced increased scrutiny in recent years, with location data showing many sites situated in town centres and high streets. The SMF report presents the tax proposal as a potential revenue tool while the linked regulatory developments address operational standards.

Conclusion

The Social Market Foundation polling offers a snapshot of public attitudes toward raising Machine Games Duty on adult gaming centres and casinos to 40%. With projected additional revenue between £275 million and £458 million annually and an exemption for pub machines, the proposal fits into wider 2026 policy developments that include input from figures such as Andy Burnham. Further details on implementation will emerge as the regulatory timeline progresses.