AMUSEMENT MACHINE LICENCE DUTY (AMLD)

Requirement for licences

All amusement machines, including gaming, video, pinball and quiz machines, provided for play on any premises in the UK need a licence, unless they fall within the list of exempt machines. Licences are issued by HM Revenue and Customs and you are legally required to display your licence prominently in the premises where your machines are located. If you are renting your machines, your supplier will normally make the application for your licence.

Payment of Amusement Machine Licence Duty

Amusement Machine Licence Duty (AMLD) is payable to HM Revenue and Customs for certain types of machines. There are five bands (A – E) of duty which apply according to the type of machine and the effective cost of play.

• A – Video machines, pinball tables and prize video machines (the commonest examples being quiz machines with a cost per play exceeding 50 pence).
• B – Small-prize machines where the maximum payout per play does not exceed £ 8 (in money or tokens) and where cost per play is more than 10 pence.
  • – Medium-prize machines where the maximum payout per play exceeds £ 8 but does not exceed £ 25 (in money or tokens), and where the cost per play is not more than 5 pence.
  • – Jackpot gaming machines where the maximum payout per play exceeds £ 25 (in money or tokens), and where cost per play is 3–5 pence.
• C – Medium-prize machines where the maximum payout per play exceeds £ 8 but does not exceed £ 25 (in money or tokens) and where the cost per play is more than 5 pence.
• D – Jackpot machines where the maximum payout per play exceeds £ 25 (in money or tokens), and where cost per play is 10 pence.
• E – Jackpot machines where the maximum payout per play exceeds £ 25 (in money or tokens), where cost per play is greater than 10 pence.

(Note: You are not permitted to install category ‘D’ or ‘E’ machines in public houses – see section, ‘Permits’ above.)

At the time of writing (2006), the annual rates of duty for each machine category were as follows:

Category	Annual Duty (£) per machine
A	£250
B	£665
C	£715
D	£1,415
E	£1,915

Your machine supplier normally collects a proportion of AMLD each time they empty their machines and pays this to HM Revenue and Customs. They normally deduct this from the machine takings, together with their rental, before paying you your machine income. If you own a machine which is liable for AMLD, you will be responsible for making these payments to HM Revenue and Customs yourself.

Machines generally not needing a licence

The following machines do not generally need a licence and are not liable to duty:

• crane grab machines;
• children’s rides;
• table football games;
• snooker and pool tables;
• bar billiards;
• vending machines and jukeboxes;
• laser games usually played in a labyrinth with a portable ‘gun’.

Exempt machines

The following machines are generally exempt from AMLD and can be provided for play without a licence:

• Two-penny machines – where the cost per play is not more than 2 pence.
• Five-pence play and ten-pence play small-prize (AWP) machines – with a cost per play of 10 pence or less.
• Prize video machines (SWPs – Skill with Prize machines) – with a cost per play of 50 pence or less.
• Amusement machines that do not give prizes – principally pinball and video machines that do not give prizes, with a cost per play of 50 pence or less.