UK gambling machine tax decision awaited

The UK high street gambling sector is waiting for the autumn budget, due to be announced on 28 October. The issue on the agenda is how the Machine Games Duty applied to category B machines will change from its current rate of 20 percent.

According to press reports, the government may prefer a rate of 25 percent over the 40 percent that was discussed earlier. However, no official decision on this rate has been published ahead of the budget. The Social Market Foundation had proposed doubling the rate and projected additional revenue of between 275 million and 458 million pounds.

The Betting and Gaming Council argues that a tax increase would put serious pressure on jobs and venues. According to research commissioned by the industry, a rate of 40 percent could put 16,000 jobs, 1,500 betting shops and 34 casinos at risk. The same research states that closures could reduce Treasury tax revenue by around 124 million pounds.

Financial adviser Andrew Bowden calculates that a 25 percent rate could bring in around 120 million pounds if no shops close. However, he estimates that each betting shop closure would reduce total tax revenue by around 155,000 pounds.

Industry representatives say that prolonged uncertainty is delaying investment decisions and could speed up closures. Until the budget is announced, none of the rates reported so far should be treated as confirmed policy.