Question 1

What machines can I have?

Accepted Answer

The rules regarding gaming machines differ depending on whether you are a commercial business or a non-profit club. It is important to know what you are entitled to so you can maximise your revenue.

Maximum Allowance: Holders of a Club Machine Permit are entitled to a maximum of three gaming machines in total.

1. The B4 Machine (£400 Jackpot)

• Available to all holders of a Club Machine Permit (including commercial clubs like snooker or golf clubs).
 • Up to £400 and a maximum £2 stake
2. The B3A Machine (£500 Jackpot)

• Exclusively for non-commercial, not-for-profit clubs. This includes Working Men’s Clubs, Royal British Legions, Welfare Clubs, and Social Institutes.
 • The Jackpot: Higher jackpot of £500.  and a maximum £2 stake
 • B3A machines are completely exempt from Machine Games Duty (MGD), meaning your club keeps a larger share of the profits.
 • If eligible, you may have one B3A machine as part of your three-machine allowance.
Example Setup for a Social Club: A typical non-profit club in Kent might choose to install one B3A machine (for the higher tax-free jackpot) and two B4 digital machines to offer maximum variety to their members.

Question 2

Do I require any licences or permits or need to pay any duty?

Accepted Answer

Yes, there are requirements from both HMRC and your local council, but Invicta Amusements is here to make the process hassle-free.

1. Machine Games Duty (MGD) You do need to be registered with HMRC for Machine Games Duty; this is the tax that replaced the old amusement machine licence system.

• The Cost: MGD is payable at 20% of the net revenue from the machines.
 • The Benefit: All money earned from these machines is exempt from VAT.
 • The B3A Advantage: If your club operates a Category B3A machine (£500 Jackpot), it is exempt from both VAT and Machine Games Duty, allowing you to retain 100% of the machine's profit.

2. Local Authority Permit In addition to MGD, your premises require a Club Machine Permit from the local licensing authority (your local council).

• Allowances: This permit allows for up to three machines in total.
 • Machine Types: Most clubs are entitled to machines with a maximum £2 play and £400 jackpot. However, not-for-profit clubs (such as social clubs, welfare clubs, and the Royal British Legion) are permitted to have one B3A £500 jackpot machine as part of their three-machine allowance.

How We Help
Invicta Amusements will handle the whole application process for the Club Machine Permit and pay the application fee on your behalf. We ensure the paperwork is sorted so you can focus on running your club.

Question 3

What is the difference between a Commercial Club and a Not-for-Profit Club?

Accepted Answer

The main difference lies in how the club is owned and where the profits go, but for gaming machines, the distinction is crucial because it determines which jackpot you can offer and how much tax you pay.

1. Not-for-Profit Clubs (Members’ Clubs)
These are clubs established and conducted for the benefit of their members, not for commercial gain. Examples include Working Men’s Clubs, Royal British Legions, Welfare Institutes, Social Clubs, and political clubs.

• You are entitled to a total of three machines. Uniquely, one of these can be a Category B3A machine.
 • The B3A machine offers a higher £500 jackpot and is completely tax-free (exempt from both VAT and Machine Games Duty). This means your club keeps 100% of the profit from that machine.

2. Commercial Clubs (Proprietary Clubs)
These are businesses run for profit, typically owned by an individual or a company rather than the members themselves. Common examples include commercial snooker clubs, pool halls, and proprietary sports bars.

•  You are also entitled to a total of three machines under a Club Machine Permit.
 • You generally cannot have a B3A machine. Instead, you can install Category B4 machines.
 • The Jackpot & Tax: These machines have a maximum jackpot of £400 and are subject to 20% Machine Games Duty (MGD).

Premium Fruit Machine & Digital Gaming Hire for Kent Clubs