Adding slot machines and fruit machines to your pub is a smart way to increase dwell time and boost your venue’s revenue. But before you plug in and start earning, it’s essential to understand the legal requirements for gaming machine licensing and Machine Games Duty (MGD) in the UK. This guide explains everything you need to know to stay compliant, and why working with Diamond Leisure makes the process seamless.
Understanding Gaming Machine Licensing in the UK
Automatic Entitlement
If your premises has a license to sell alcohol for on-site consumption, you’re automatically entitled to provide up to two Category C or D gaming machines. You must notify your local licensing authority and pay a small fee. This is known as a notification of intent.
- Category C: Max stake £1 / Max cash prize £100
- Category D: Low-stake machines like toy grabbers and simple fruit machines
Licensed Premises Gaming Machine Permits
If you want to provide more than two machines, you’ll need to apply for a Licensed Premises Gaming Machine Permit from your local council. This gives you the flexibility to install more machines and attract more customers.
Responsible Placement
Machines must be placed where they can be supervised by staff to prevent underage use and promote responsible play, as outlined by the Gambling Commission.
What Is Machine Games Duty (MGD)?
Who Needs to Register
If your machines offer cash prizes greater than the cost to play, you need to register for MGD with HMRC. You must register at least 14 days before making the machines available for play.
Current MGD Rates (2025)
- 5% – For machines with max stake of 20p and max prize of £10
- 20% – For most Category C machines (stakes between 21p and £5)
- 25% – For high-stake machines (over £5 per play)
Filing and Paying MGD
Returns are filed quarterly via HMRC. Payments must be made within 30 days of the end of each accounting period. Ensure you keep accurate records of machine takings (stakes minus payouts).
Why Work with Diamond Leisure?
Diamond Leisure are not just machine suppliers—they’re licensing and compliance experts. Here’s how they support pub owners across the UK:
1. Licensing Expertise
Their team knows the ins and outs of local and national licensing. They’ll help you handle notifications, permits, and ensure your machines are correctly classified and positioned.
2. Machine Games Duty Guidance
Diamond Leisure help you understand your tax obligations, register with HMRC, and keep records in good order—removing the stress of MGD paperwork.
3. Reliable Machine Supply & Support
All machines are modern, compliant, and maintained regularly. You won’t need to worry about servicing or technical issues—they handle it for you.
4. Fully Licensed & Regulated
Diamond Leisure is fully licensed by the Gambling Commission, so you can operate with total confidence.
Ready to Add Gaming Machines to Your Pub?
With the right setup and a trusted partner, gaming machines can become a major profit stream for your venue. Diamond Leisure will help you stay compliant, register for Machine Games Duty, and maximise your returns.
Contact Diamond Leisure Today and get expert help with your licensing and machine hire.
This article is intended as general guidance. For full regulations, visit gov.uk and the Gambling Commission.