The Betting and Gaming Council (BGC) has made a direct warning to the UK government about the loss of thousands of jobs, should Machine Games Duty (MGD) rise to 40%.
In the BGC’s latest statement, the wording is cutthroat from the off, stating that “thousands of casino workers face losing their jobs and venues across Britain could close for good if the Chancellor presses ahead with a fresh tax raid”.
It comes off the back of rumours that Chancellor John Healey is pondering doubling the three levels of MGD in his inaugural Autumn Budget, which is set to be announced in just over two weeks time.
Up to 3,800 jobs would be put at risk should this occur, the BGC has said.
BGC focuses on the relatable
In prior warnings regarding tax hikes, much of the BGC’s focus has been on warning the government that they could lead players towards the black market.
Granted, the physical illegal gambling market is of a much smaller scale in the UK compared to the online one, but there is no mention of pushing players towards unlicensed operators at all.
Instead, Chief Executive Officer Grainne Hurst and the rest of the organisation have drawn attention to issues which much of the general public can sympathise with – shop closures, a kiboshing of plans for investment and job losses.
“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,” Hurst said.
“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 also added that the current situation represents an “existential threat” to the industry.
“The closures would hit local economies and destroy valuable jobs, including opportunities for young people starting their careers, women, part-time workers and those building long-term careers in hospitality and leisure,” the BGC’s statement read.
The trade body also warned that half of all threatened closures would occur in Northern England and Scotland, with a further 20% in the Midlands.
UK’s trade body joins the lobbying contingent
And the BGC is not alone in urging Healey and Prime Minister Andy Burnham to avoid increasing MGD.
Richard Harris, CEO of the Rank Group, which owns heritage UK land-based brands Mecca and Grosvenor, recently said that this increase would lead to “about a third” of the firm’s estate having to close.
The BGC also pointed out that casinos in Britain welcome 14 million customers annually, contributing £515m in taxes and generating £815m for the economy.
It does not take long to figure out that a potential tax increase set to lead to closures would dramatically reduce these figures.
Concluding the BGC’s statement, Hurst commented: “Let’s not pretend these casinos will simply be replaced by new businesses.
“Many former casino sites already stand empty, a stark reminder of what happens when these venues close. Once those doors shut, the jobs, investment and opportunities they provide can be lost for good.
“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.”
