FOR two decades they have been a near-ubiquitous feature in pubs, testing drinkers on their knowledge of one-hit wonders, obscure national capital cities and the medieval monarchy.

However, fears have been raised that a new tax – scheduled to become law in the coming months – could spell the end of the quiz machine, turning it into a relic from another era.

The new Machine Games Duty is due to become law by April, before being implemented next February.

Experts warn it will result in profits on quiz machines being taxed for the first time, with concerns the rate could be as much as 22%.

It is feared the move will be a nail in the coffin to pub owners, who have already suffered a decline in trade blamed on the smoking ban, a new licensing regime and competition from cheap alcohol being sold at supermarkets.

Licensing solicitor Stephen McGowan, from law firm Lindsays, said: "I understand HM Treasury is proposing a rate of 22%. This means profits on pub quiz machines such as Who Wants to Be a Millionaire? will be taxed at that level for the first time.

"I fear publicans will simply stop leasing these machines from the suppliers. Profit margins are tight and the extra income from quiz machines is not to be sniffed at.

"It is no secret the licensed trade is facing difficult times, and this new tax will be another nail in the coffin."

Mr McGowan added: "I really fear this will bring about the death of the pub quiz machine, and it will have a corollary impact on the machine supplier industry whose biggest customer is, of course, pubs."

Under the UK Government's proposals, the existing tax on things such as slot machines will be scrapped and replaced with a levy on practically everything that could feature in an amusement arcade.

With "skill machines" being taxed for the first time, there is a concern the licensed trade could abandon the quiz machine, with almost one-quarter of all turnover from them to go to the Treasury.

Until now, profits from gaming machines based on skill have not been taxed as they do not involve gambling as such – winning players' rewards come from their general knowledge ability.

According to one expert, the taxman has tried to argue, unsuccessfully, that the random generation of a question by the machine contains an element of chance and is a form of gambling but, having failed on that point, "they have simply re-written the tax rules completely".

The British Beer and Pub Association (BBPA) also estimates the laws will cost licensees an extra £200 just to complete a quarterly tax return.

Neil Williams, of the BBPA, said: "Lumping these popular quiz machines into this new tax is hugely damaging.

"Until now, they've only paid VAT. If the sums don't add up, we will undoubtedly see their removal from pubs, and with it, a lot of fun for pub goers."

An HM Treasury spokesman said: "The Government believes the Machine Games Duty will improve the future predictability and sustainability of the tax regime by making it more resilient to technological progress, regulatory changes and to inflation.

"Moving to a gross profits tax supports the Government's objective of a fairer tax system by ensuring the taxation of games machines is more closely linked to machine profits."

Meanwhile, the British Amusement Catering Trade Association met Treasury Minister Chloe Smith earlier this week to urge her not to hit the struggling gaming industry with higher duty.

The association was expected to argue that games currently excluded from tax, such as quiz machines, should remain exempt from Machine Games Duty.