Tax hike threatens venues, jobs across Britain, BGC warns

• The Betting and Gaming Council in the UK sounded the alarm about the impact an increase in the machines’ games duty may have
• Grainne Hurst, BGC’s Chief Executive, deemed an increase in the machine games duty to 40% an "existential threat to casinos across Britain"
• North of England and Scotland may be impacted by 50% of the closures, the Council estimates

Talks about a potential increase in machine games duty across Britain pose an existential threat for the casino industry, the Betting and Gaming Council (BGC) warns.

During a time when lawmakers are exploring a potential increase in machines' games duty from 20% to 40%, the Council explains that thousands of jobs are at risk if such a change is completed.

3,800 jobs at risk if Machine Games Duty jumps to 40%

Across Britain, casinos directly employ more than 10,000 people, while supporting an extra 3,700 jobs.

The sector contributes £515m ($682.2m) in the form of taxes annually, while generating some £815m ($1.07bn) for the economy and welcomes 14m customers yearly.

In a press release, the BGC sounded the alarm about the impact the casino industry may sustain if the Machine Games Duty (MGC) increases to 40%.

Per the Council, up to 3,800 jobs would be at risk if the tax hike becomes reality.

This, in turn, would result in the closure of as much as one third of all shops and casinos by operators.

Grainne Hurst, BGC’s Chief Executive, described the tax hike as an "existential threat to casinos across Britain."

"We are talking about thousands of hardworking people losing their livelihoods and venues that have served their communities for decades closing their doors for good," she added.

"You cannot tax a casino that has closed"

The BGC estimates that approximately 50% of all potential closures would be in the North of England and Scotland. Those closures may directly put up to 1,900 jobs at risk.

On the other hand, the Midlands would sustain 20% of the closures while 10% of shops across London may close.

"These are good jobs, offering young people a first step on the career ladder, flexible work and the chance to build a career. And it is towns and cities across the North, Scotland and the Midlands that will pay the heaviest price," Hurst stressed.

According to the BGC’s Chief Executive, such closures directly affect jobs as well as investment opportunities.

"You cannot tax a casino that has closed. The Chancellor must not gamble with thousands of British jobs and the future of an entire industry," Hurst said in conclusion.

If the tax hike continues, £50m+ ($66.3m) investment in the sector may also be at risk, scaled back or cancelled altogether, the BGC further said.

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