Machine Games Duty

Machine Games Duty

Machine Games Duty (MGD) was introduced on 1 February 2013.  It has replaced Amusement Machine Licence Duty (AMLD). Contact HMRC for further information.

Machine requirements

The premises must be licensed under the Licensing Act 2003 to sell alcohol for consumption on the premises, without the requirement that alcohol is served only with food and there must be a bar for serving alcohol to customers on the premises. The gaming machines must be in the licensed area.

The Gambling Act 2005 provides for two types of gaming machines which can be located in alcohol licensed premises. These are:

  • category C - maximum stake of £1 and a maximum prize of £100
  • category D – depends on the type of machine.

Category D

  • category D - non-money prize (other than crane grab machines) - maximum stake of 30p and maximum prize of £8
  • category D - non-money prize (crane grab machine) - maximum stake of £1 and maximum prize of £50
  • category D - money prize - maximum stake of 10p and maximum prize of £5
  • category D - combined money and non-money prize (other than coin pusher or penny fall machines) - maximum stake of 10p and maximum prize of £8 (no more than £5 can be a money prize)
  • category D - combined money and non-money prize (coin pusher or penny falls machine) - maximum stake of 20p and maximum prize of £20 (no more than £10 can be a money prize).

All alcohol licensed premises that provide gaming machines for use on the premises must comply with any relevant Code of Practice issued by the Gambling Commission under Section 24 of the Gambling Act 2005.

Making sure gaming machines are fair and open

All machine manufactures, suppliers etc. are required to comply with the Commission’s Technical Standards.

As part of those standards:

  • machines must display information about help available to problem gamblers
  • customers will only be able to play one game at a time and the speed of play on any game will be restricted
  • manufacturers must not make machines (other than category D machines) specifically attractive to children and young people
  • gaming machines must display information on the machine, including the nature of the machine, stake and prize levels and percentage return to the player
  • in the case of a dispute between the operator and a customer, gaming machines must allow the operator to track the history of previous games played on the machine
  • gaming machines must undergo certain tests to ensure that they are fair and open before they are put on the market. The nature of these tests will vary according to the category of the machine.

For more information contact:

  • Licensing Services on 01634 337 107 or 01634 337 108
  • enforcement on 01634 337 112 or 01634 337 106
  • email licensing@gravesham.gov.uk.

Write to: Licensing Unit, Medway Council, Gun Wharf, Dock Road, Chatham, Kent ME4 4TR.