Seaside arcades in Britain are at risk of closure if gaming taxes are increased, according to industry leaders. They warn that all 400 venues could be forced to shut down if the slot machine duty is raised from 20% to 50%, which they believe would have a devastating impact on coastal towns. This move could also result in the closure of high street gaming centers and affect the earnings of pubs and working men’s clubs with fruit machines.
The gambling industry is pushing back against potential tax hikes in the upcoming Budget, with former Labour PM Gordon Brown endorsing proposals to target the under-taxed gambling sector. Concerns have been raised that efforts to address gambling addiction, particularly online, might inadvertently harm traditional forms of betting enjoyed for generations, such as horse racing.
Joseph Cullis, president of Bacta, the trade body representing seaside arcades and adult gaming centers, emphasized the importance of slot machines in sustaining these businesses during off-peak seasons. He highlighted the vital role these establishments play in supporting local economies and providing employment opportunities.
While the Institute for Public Policy Research suggests increasing various gambling-related taxes to raise additional revenue, there are concerns about the potential repercussions on the industry. Betting firms already contribute significantly to the Treasury through different levies, and any further tax hikes could impact their operations and profitability.
The industry argues that altering existing tax structures could have unintended consequences, affecting not only the most addictive forms of gambling but also less harmful activities like bingo and horse racing. Suggestions have been made to reconsider specific duties to strike a balance between revenue generation and industry sustainability.
Critics warn that higher taxes could lead to negative outcomes such as reduced odds for players or the proliferation of black-market gambling. While concerns persist about the impact of tax changes on the industry, stakeholders are advocating for a balanced approach that safeguards both public services and business growth.