UK chancellor reportedly settles on 5% Machine Game Duty rise
The Times reports John Healey will raise MGD by 5% in the autumn budget, smaller than the 20% hike proposed by a think tank in June.
Budget announcement expected Wednesday
The UK’s chancellor of the exchequer, John Healey, will outline the UK’s autumn budget on Wednesday 28 October. The Times reported that Healey has now settled on a smaller 5% hike to Machine Game Duty.
The Social Market Foundation think tank released a report in June calling for a doubling of MGD from 20% to 40%, which it claimed would raise between £275 million and £458 million. A draft version of the SMF’s original June report was found to have been accidentally published with senior staff comments attached, which reveal uncertainty among top brass over some of the report’s wording.
Industry warns of closures and job losses
The Betting and Gaming Council commissioned research which reportedly found as many as 16,000 jobs, 1,500 betting shops and 34 casinos could be at risk from a 20% MGD hike.
Buzz Bingo told the BBC that 40% of its clubs would be pushed into loss-making territory by a 5% MGD rise.
Financial consultant Andrew Bowden calculated that with no store closures the treasury would take about £120 million in tax from a 5% MGD rise. He estimated it would take 280 betting shop closures to wipe out any net gain from a 5% MGD rise.
Compliance concerns raised
Simon Zinger, managing partner at Calibri Law and Bluestar Partners, predicts an enforcement spike in about 12–24 months stemming from operators dialing down compliance and RG measures to preserve margins. “We will see an enforcement spike in about 12-24 months’ time that stems from operators who dial down compliance and RG measures as they try to preserve margins,” he said.
Sources
- iGaming Business · Industry media · primary source ·
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