Seaside arcades across Britain are facing the threat of closure if gaming taxes are increased, as warned by industry representatives. According to bosses, a potential hike in slot machine duty from 20% to 50% could have devastating consequences, risking the shutdown of all 400 venues and significantly impacting coastal towns. Additionally, this move could also negatively affect high street gaming centers, pubs, and working men’s clubs that house fruit machines.
The gambling industry is actively opposing tax hikes proposed in the upcoming Budget, with former Labour Prime Minister Gordon Brown endorsing suggestions from the Institute for Public Policy Research to address what they consider as an undertaxed sector. The proposed tax adjustments aim to raise approximately £3.2 billion to combat child poverty. However, concerns have been raised that efforts to address gambling addiction, particularly online, may inadvertently harm other traditional forms of betting that have long been enjoyed by the public.
Joseph Cullis, president of Bacta, the trade association for seaside arcades and adult gaming centers, emphasized the potential dire consequences of doubling the current machine games duty to 40% or 50%, stating that such a move could lead to the demise of the industry. He highlighted the important role slot machines play in sustaining seaside arcades during off-peak seasons and expressed worries about the economic impact on popular destinations like Blackpool.
While the industry awaits the Budget decisions, the focus remains on the proposed tax adjustments aimed at addressing gambling-related harm and child poverty. The Institute for Public Policy Research recommends increasing various levies, including the remote gaming duty, machine games duty, and general betting duty, to generate additional revenue. The proposal excludes changes to bingo or lottery duties.
Critics have pointed out disparities in the gambling sector, with some operators reaping substantial profits while others face potential financial challenges. The industry heavily relies on prize money and sponsorship from bookies and gambling firms, making it susceptible to any new tax impositions on their profits.
As debates continue surrounding the proposed tax changes, concerns persist about unintentionally affecting less harmful gambling activities. Industry insiders suggest potential adjustments in specific duties to strike a balance between revenue generation and safeguarding various forms of gambling. The discussion also includes considerations about potential closures of betting shops, black market risks, and the need for regulatory measures to ensure fair operations within the gambling industry.
