SMF Report Reveals Public Backing for Higher Taxes on Physical Gambling Venues
Avery Hansen · Jul 2, 2026

SMF Report Reveals Public Backing for Higher Taxes on Physical Gambling Venues

A recent report from the Social Market Foundation outlines polling data that shows 43% of the public supports raising taxes on adult gaming centres and casinos through an increase in machine games duty, and the findings arrive at a time when physical high-street venues continue to operate under the existing 20% rate while remote operators faced earlier adjustments.
The proposal centres on doubling machine games duty from 20% to 40% for Category B £2 slot machines found in these locations, and modelling within the document estimates this change could deliver between £275 million and £458 million in additional annual revenue on top of the current £600 million already collected from those machines.
Details of the Tax Adjustment Proposal
Adult gaming centres, often referred to as slot sheds, along with traditional casinos on high streets, escaped the remote gaming duty increase that affected online platforms in prior years, and the SMF analysis points to this disparity as a key factor in targeting physical venues for the next potential adjustment, while the report includes polling conducted to gauge public attitudes toward such a move.
Data from the modelling shows the extra revenue range depends on assumptions around player behaviour and venue throughput, yet the core figure remains consistent across scenarios presented in the document, and observers note that this approach would apply uniformly to land-based machine operations without extending to online equivalents at this stage.
Public Opinion Findings from the Polling
The survey element of the SMF work indicates that 43% of respondents back the tax rise, and this level of support emerges even though the venues in question have maintained steady footfall in many town centres across Britain, while the polling also captures views on how such funds might be allocated if collected.
Figures reveal that backing for the change aligns with broader discussions around fairness between physical and remote gambling sectors, and those who reviewed the data point out that support holds across different demographic groups in the sample, although the report stops short of claiming majority endorsement.
Revenue Projections and Current Collection Context
Current yields from Category B machines stand at approximately £600 million per year under the 20% duty, and the proposed doubling would layer on the additional £275 million to £458 million range according to the SMF calculations, which factor in potential shifts in machine numbers and average stakes over time.
The report connects these projections to ongoing fiscal considerations for local authorities, and the extra amounts could represent a notable uplift if implemented without significant displacement effects on player participation, while comparisons within the document highlight how remote sectors already contribute under different duty structures.

Political Connections and Timing Considerations
The SMF findings have been linked in coverage to potential future policy directions associated with Andy Burnham, and the timing of the report release on the Monday prior to the Guardian article positions it ahead of summer parliamentary discussions, although no immediate legislative timeline appears in the document itself.
High-street venues have faced separate regulatory scrutiny in recent periods, and the tax proposal arrives alongside other measures that some operators monitor closely, yet the report itself focuses primarily on the duty adjustment and public polling rather than broader compliance deadlines.
Impact on Land-Based Operations
Physical gambling locations operate under the existing duty framework that has remained unchanged for machine games since the remote adjustment, and the SMF analysis suggests the proposed increase targets this gap without immediate overlap into online taxation, while venue operators would need to assess cash flow implications if the rate moves to 40%.
Evidence in the report indicates that the additional revenue stream could support public finances, and the polling component demonstrates measurable support levels that policymakers might reference in future deliberations, although implementation details would require further government modelling beyond the think tank scope.
Conclusion
The Social Market Foundation document combines polling results with revenue modelling to present a case for adjusting machine games duty on adult gaming centres and casinos, and the 43% public support figure alongside the £275 million to £458 million projection range offers concrete data points for ongoing sector discussions, while the link to potential policy interest from figures such as Andy Burnham places the findings within a wider context of high-street gambling regulation.
Current collection from these machines totals £600 million annually at the 20% rate, and the report underscores the distinction between physical and remote operations as a central element in the proposed change, providing a factual basis for further examination by stakeholders.