Gambling Operators Warn UK Tax Hikes Risk 16,000 Jobs
Entain and Rank Group warn the UK Government that doubling machine games duty could trigger widespread venue closures and eliminate thousands of jobs.
Major gambling operators Entain and Rank Group have warned the UK Government that proposed tax increases in the October 28 Budget could trigger widespread venue closures and job losses. The companies are urging Chancellor John Healey to reconsider plans to increase the machine games duty, which taxes slot and roulette machines, with speculation that the rate could double from 20 percent to 40 percent.
Industry leaders argue the hike threatens the viability of betting shops, casinos, and bingo halls, potentially risking 16,000 jobs and 1,500 betting shops. A report from the Night Time Industries Association indicates that doubling the duty could specifically put 3,800 jobs and 34 casinos at risk, while threatening 100 million pounds in planned investment. This follows an April increase in remote gaming duty from 21 percent to 40 percent. The Betting and Gaming Council reports that over 600 betting shops have already closed since the last Budget.
Despite these warnings, Entain and Rank Group reported recent revenue growth in their UK operations. Entain saw a 4 percent increase in third-quarter net gaming revenues, while Rank Group reported a 5 percent rise in like-for-like net gaming revenues to 216.1 million pounds. However, Rank Group recently closed three venues in Swansea, Reading Central, and Sunderland. While the Social Market Foundation suggests the tax hike could generate 450 million pounds for the Treasury, industry actors maintain it will ultimately reduce tax receipts by halting investment.
