Think Tank Report Shows Public Backing for Tax Hikes on High-Street Slot Machines

A recent analysis from an influential think tank has drawn attention to public attitudes toward taxation on adult gaming centres and high-street slot machines. The findings point to measurable support among respondents for increases in machine games duty, a levy applied to certain gaming equipment found in casinos and betting shops across Britain. According to the report released in late June 2026, 43% of those surveyed expressed approval for Labour's proposal to raise taxes on these venues and devices. Observers note that this figure reflects broader discussions around revenue generation in the gambling sector, particularly as political figures consider adjustments to existing duty rates. The proposed change involves doubling machine games duty from its current 20% level to 40%. Category B machines, which operate at a £2 maximum stake per spin, form the core focus of these calculations. Data from the analysis indicates that such a shift could yield between £275 million and £458 million in extra annual revenue, building on the roughly £600 million already collected through the existing duty structure.

Breakdown of Projected Revenue from Category B Machines

Researchers who compiled the figures examined tax contributions specifically tied to high-street operations rather than remote or online platforms. They calculated the additional yield by modelling the impact of the rate increase across thousands of machines located in adult gaming centres and similar venues. The range of £275 million to £458 million accounts for variations in player volume and machine utilisation rates observed in recent years.

Those who've reviewed the methodology highlight that the estimates remain grounded in current participation data and do not incorporate speculative growth assumptions. The base revenue of approximately £600 million provides a benchmark against which the uplift is measured, allowing policymakers to assess the scale of potential fiscal returns.

Political Figures and Implementation Considerations

Andy Burnham, positioned as a potential future prime minister under Labour, has been referenced in connection with these tax measures. The report frames the duty adjustment as one option available should the party pursue implementation following any shift in government leadership. Discussions around the proposal have centred on how the additional funds might support public services, though the analysis itself stops short of prescribing exact allocation strategies.

Experts familiar with gambling taxation note that Category B machines represent a significant portion of high-street activity, making them a logical target for duty reviews. The 43% public support level emerges from polling that asked respondents about fairness in taxing these specific devices compared with other forms of gambling activity.

Context Within Broader Gambling Taxation Landscape

Current machine games duty applies uniformly at 20% to qualifying equipment, generating the established £600 million baseline. The think tank's modelling demonstrates how a move to 40% would scale that contribution without altering the fundamental structure of the tax. Figures reveal that the projected increase depends on maintaining stable machine numbers and player engagement levels seen in the most recent operational reports.

One study referenced in the coverage compared these high-street machines with other taxed gambling products, showing distinct revenue patterns based on venue type and stake limits. Observers note that adult gaming centres, which house many of these Category B devices, operate under different regulatory conditions than larger casinos, influencing both footfall and tax exposure.

teh Guardian coverage of the report, available here, outlines the polling questions and revenue scenarios in greater detail. Additional background appears in related sections on gambling policy developments.

Stakeholder Reactions and Data Interpretation

Industry participants have begun reviewing the numbers to understand operational implications. Data indicates that the duty applies at the point of play, so any rate change would directly affect the amount retained by operators after tax. The think tank report presents the 43% support figure alongside breakdowns by demographic groups, though it does not claim universal consensus on the issue.

Those monitoring fiscal policy observe that the £275 million to £458 million range provides a concrete reference point for budget planning discussions scheduled in the coming months. The analysis focuses exclusively on Category B £2-a-spin machines rather than incorporating other stake categories or venue formats.

Conclusion

The think tank findings establish a clear snapshot of public opinion and revenue potential surrounding machine games duty adjustments. With 43% support recorded and additional annual proceeds estimated between £275 million and £458 million, the report supplies quantitative inputs for ongoing policy evaluation. As July 2026 progresses, attention remains on how these figures factor into wider fiscal strategies under consideration by Labour figures including Andy Burnham. The base collection of roughly £600 million continues to serve as the foundation against which any implemented changes would be measured.