The question of VAT on slot machines was dealt with by the European Court of Justice which announced some clarifications of the complex issue of VAT on slot machines. HM Customs and Revenue sought these clarifications after several court rulings in the British courts which won VAT rebates for groups which claimed that they were unfairly taxed on slot machine takings. They claimed that the VAT was due on some machines and not on others and that it breached European laws. The European Court of Justice has ruled in favour of HM Customs and Revenue in this case so Revenue could seek the return of the rebates won in the British courts. It remains to be seen what course of action they will take.
All in all, the situation for slot machine operators either in amusement arcades or in clubs and pubs doesn’t look too promising financially or legally.