Gaming-Tax Hike Warning: What It Means for Arcades and Seaside Leisure

The government’s anticipated move to raise gambling taxes is sounding alarm bells in the UK’s amusement-arcade sector. With rises in Machine Gaming Duty (MGD) and overall regulatory burden on the horizon, operators warn of serious consequences for high-street and seaside arcades.

According to Bacta, raising machine-gaming duty above current levels could threaten thousands of jobs. One recent analysis commissioned by the organisation projected that up to 15,300 full-time posts across adult gaming centres (AGCs) and high-street arcades might be at risk if duty increases go ahead. 

“If the Budget raises machine-game duty to an unsurvivable level, thousands will be forced to visit the Job Centre,” warned Bacta president Joseph Cullis. “We are bricks-and-mortar venues offering low-stakes, low-cost fun to millions up and down the UK.” 

Why Arcades Are Particularly Vulnerable

Arcades and adult gaming centres operate in a margin-sensitive environment. Unlike online platforms, they face significant fixed costs — premises rent, energy bills, staff, machine placements. Higher tax rates would squeeze those margins further, reducing flexibility for investment, upgrades or simply maintaining existing operations.

Bacta’s evidence states that the amusement-machine industry contributes around £2 billion annually to the UK economy, supporting up to 34,000 direct and indirect jobs. 

This means any abrupt tax increase could hit not just individual venues, but entire communities — particularly seaside towns where arcades form part of the tourism and leisure fabric.

“This industry is consistently plagued with snobbery and misunderstandings,” adds Joseph Cullis — pointing to the fact that arcades deliver a form of accessible leisure that many UK towns rely on. 

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30 October 2025

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