Gaming Machine Tax Rise Could Risk 3,800 Jobs
Nearly 4,000 jobs in Britain's casino sector could be at risk if the Chancellor doubles the tax on gaming machines in the upcoming Autumn Budget, according to a report by the Night Time Industries Association (NTIA), modelled by consulting firm EY.
Operators currently pay Machine Games Duty (MGD) of 20% on profits from fruit machines, roulette terminals and other slot machines in licensed venues.
The Independent reports that the Social Market Foundation think tank has suggested the government could raise around £450 million by doubling the rate to 40%.
What The Report Found
The NTIA/EY modelling found that a rise to 40% MGD could put 34 casinos and 3,800 jobs at risk, alongside £100 million of planned investment and £73 million of tax receipts. Some 14,000 people currently work across Britain's 108 licensed casino premises, the report states.
The report stopped short of calling the outcomes inevitable, noting: "The modelling is not a prediction that these outcomes will inevitably occur.
It does, however, demonstrate why the effects of further taxation should be assessed across the whole physical business model."
It added that reduced venue profitability "can affect capital investment, staffing, suppliers and the ability to develop the hospitality and entertainment offer."
Industry And Economic Impact Reaction
Casino and bingo operator Rank Group, which owns Mecca Bingo and Grosvenor Casinos, has separately warned that a third of its venues could close if the tax hike proceeds, affecting roughly 30% of its UK workforce, around 2,000 workers.
Joe Brown, head of gaming at Metropolitan Mayfair, said the cumulative effect of multiple pressures was the bigger concern: "For me, the biggest issue is the cumulative effect of regulation, taxation, employment costs and banking restrictions rather than any single measure."
The report also surveyed 1,442 casino customers over two weeks in September and October, finding that 55% probably or definitely would not otherwise have visited the local area, and 72% used at least one other nearby business such as a restaurant, hotel or parking facility.
Casino Games Hub
Beyond The Gaming Floor
NTIA chief executive Michael Kill argued the research shows casinos support wider local economies: "Britain's high streets need businesses that give people a reason to leave home and spend time in our towns and cities. Modern casinos support jobs, hospitality, entertainment and neighbouring businesses.
That contribution deserves recognition in the national conversation about high-street regeneration."
Alex Oswald, managing director at Metropolitan Gaming, added that "casinos are increasingly part of a much broader hospitality and entertainment experience," attracting visitors who go on to spend at neighbouring restaurants, bars and hotels.
The findings follow a separate increase in Remote Gaming Duty from 21% to 40% in April, part of a wider rise in gambling taxation this year.
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