BGC Criticizes Proposed Increase in Machine Games Duty as Harmful to UK Gaming Sector
BGC Opposes Machine Games Duty Increase Proposal
The Betting and Gaming Council (BGC) of the United Kingdom has publicly expressed its strong opposition to the suggested increase in the machine games duty (MGD). The Council warns that raising this tax could have damaging effects on the UK’s gaming industry, putting additional pressures on an already sensitive sector.
SMF’s Proposal to Double the Machine Games Duty
The Social Market Foundation (SMF) recently proposed raising the MGD from 20% to 40%. Their justification was based on the belief that taxation on gaming activities should reflect the social harm they potentially cause. The SMF also pointed out that the current MGD has avoided recent tax increases introduced in the Autumn Budget, implying that an adjustment to align with other duties is reasonable.
BGC Highlights the Importance of Gaming Machines to the UK Economy
The BGC strongly rejects these claims, arguing that the MGD increase lacks solid evidence and would be detrimental. They emphasized that gaming machines located in bingo halls, betting shops, casinos, working men’s clubs, and miners’ welfare clubs play an important role in supporting the UK’s economy.
According to the BGC, the wider gaming sector secures approximately 109,000 jobs nationwide and contributes billions in revenue. Moreover, these venues offer valuable recreational experiences to millions of responsible gamblers, including both local residents and tourists.
“Doubling Machine Games Duty would not protect those communities. It would force venue closures, cost jobs and weaken high streets, while benefiting only the growing illegal gambling market, which pays no tax, contributes nothing to local communities and offers none of the consumer protections found in the regulated sector.”
BGC spokesperson
Concerns Over Unaccounted Consequences of the Proposed Tax Rise
The BGC also criticized the SMF report for failing to assess the potential negative impacts of the tax increase. They highlighted risks such as the closure of gaming venues, job losses, and strengthening of the unregulated gambling market, none of which were addressed by the proposal.
Furthermore, polling data cited by the BGC suggests that most British citizens are against further taxation increases on gambling activities.
BGC Calls for Evidence-Based and Balanced Tax Policy
In conclusion, the BGC asserts that changes to gambling tax policies need to be driven by clear evidence. Such decisions should carefully consider their effects on employment, investment, consumers, and local communities to avoid unintended harm.
This stance aligns with previous warnings from the BGC about overly harsh regulations and tax increases possibly undermining the competitiveness of the legal gambling sector, potentially allowing illegal operators to flourish unchecked.
