Britain’s seaside arcades could face closure if gaming taxes are increased, industry leaders have cautioned. They argue that all 400 venues are at risk of shutting down if the slot machine duty is raised from 20% to 50%, a move that they believe would have devastating effects on coastal towns. This could also impact high street gaming centers and establishments like pubs and working men’s clubs with fruit machines.
The gambling industry is actively opposing potential tax hikes in the upcoming Budget, prompted by proposals from the Institute for Public Policy Research to target the under-taxed gambling sector. Former Labour Prime Minister Gordon Brown has supported these proposals, aiming to raise an estimated £3.2 billion to address child poverty. However, there are concerns that measures to address gambling addiction, particularly online, may inadvertently harm other traditional forms of betting.
Joseph Cullis, president of Bacta representing seaside arcades and gaming centers, emphasized the community value of these businesses and the potential consequences of doubling the current machine games duty. He highlighted the significant role slot machines play in sustaining seaside arcades during off-peak seasons and expressed worries about the impact on popular locations like Blackpool.
While the Treasury aims to balance funding for public services and stimulating business growth, proposals from the Institute for Public Policy Research focus on raising gambling taxes to address gambling harm and childhood poverty. Various tax proposals have been suggested, including doubling the remote gaming duty and increasing the machine games duty, with potential impacts on different sectors within the gambling industry.
Critics argue that the current tax advantages for certain gambling activities give them an edge in the market, leading to substantial profits for operators like Flutter and Bet365. The industry heavily relies on bookies and gambling firms for prize money and sponsorship, potentially jeopardizing these revenues with additional tax burdens.
The debate also includes concerns about the impact on bingo halls, where a significant portion of revenue comes from slot machines. Balancing regulatory measures to target addictive forms of gambling while preserving less harmful activities remains a challenge. The industry warns of potential closures and risks associated with the black market if tax hikes are implemented, emphasizing the need for a comprehensive approach to regulating the gambling sector.
