A legal licensing expert believes rumoured increases in gaming machine duty might not be quite as high as first feared but could still have a considerable impact on land-based gambling businesses.
Regulatory Partner, David Roberts, says latest rumblings on the topic ahead of this week’s Budget indicate the tax rise on physical slot machines in betting shops, adult gaming shops, bingo halls and casinos might not reach the mooted-up lift to 40%, but could still have a considerable impact on the gambling industry:
“Following last year’s increase to tax on remote gaming duty, we are now anticipating further taxation on the gambling industry with proposals having been rumoured for an increase in the rise to gaming machine duty to possibly as much as 40%. This would be a tax increase that would have potential to impact, Adult Gaming Centres, Betting Shops, Bingo Halls and Casinos.”
“Although we are unsure what any tax rise will look like yet, there is belief within the sector that there will be a considerable increase and an uplift to as much as 40% has been feared. However, suggestions of a smaller increase of an additional 5% on the existing tax has been mentioned in recent days.
“Any increase in duty has the potential to have a detrimental impact to the high street gambling sector, which is already seeing financial challenges leading to closures, including competing with the evolution of remote gambling alternatives, increasing costs base such as National insurance, business rates and energy costs etc. in addition to the need to keep ahead of ever challenging regulatory demands.
“You must also bear in mind is that many of these land based venues at risk of these tax rises are operated and owned by multi-channel betting and gaming companies that have also already incurred substantial increases in remote gambling tax duty in the last 12 months, and increasing cost burden of high street operations is likely to lead to further closures if these venues become increasingly unviable. Already several operators such as Entain and BetFred have announced redundancies and high street closures.
“Whatever you feel about the betting and gaming industry, many of these venues have been keeping high streets alive – employing staff and occupying premises which would otherwise have remained vacant, whilst contributing tax revenue to the government.”