Britain’s seaside arcades face the risk of closure if gaming taxes are increased, according to industry leaders. They argue that a potential hike from 20% to 50% in slot machine duty could have devastating effects on all 400 venues, potentially leading to the shutdown of coastal towns. This move could also impact high street gaming centers, pubs, and working men’s clubs with fruit machines.
The gambling industry is pushing back against proposed tax hikes in the upcoming Budget, with former Labour PM Gordon Brown supporting efforts to target the “undertaxed” gambling sector. While there is a focus on combating gambling addiction, concerns have been raised that such measures may inadvertently harm traditional betting methods enjoyed for generations, affecting industries like horseracing.
Joseph Cullis, president of Bacta, the trade body for seaside arcades, emphasized the importance of slot machines in sustaining these businesses, particularly during off-peak seasons. He warned that a significant increase in machine games duty could lead to the collapse of the industry, impacting local jobs and tourism in seaside towns.
The Institute for Public Policy Research proposes raising various gambling duties to generate additional revenue, including doubling remote gaming duty from 21% to 50% and increasing machine games duty from 20% to 50%. While some sectors of the industry are thriving, there are concerns about the potential negative effects of tax hikes on operators and the overall gambling landscape.
Industry insiders suggest that targeting the most addictive forms of gambling, such as online casinos, may inadvertently harm other less harmful activities like bingo and horse-racing. The debate continues on how to strike a balance between regulating the industry, generating revenue, and safeguarding traditional forms of gambling cherished by many.