The British gaming sector has been facing a variety of headwinds due to the UK’s continuous gambling reforms. The industry’s troubles might not be over yet as a Labour MP just floated a proposal for an entirely new Gambling Act.
SMF Seeks to Double the Machine Games Duty
MP Alex Ballinger just spoke at a Social Market Foundation (SMF) panel on machine games duty and problem gambling, sharing his thoughts and proposals on the matter. In addition to proposing an increase in the machine gaming duty, Ballinger also called for an entirely new Gambling Act altogether.
The SMF panel focused on the UK’s machine gaming duty, which avoided the autumn tax hike last year. Because of that, the SMF think tank is now calling for the machine gaming duty to be doubled to 40%.
The SMF, which also backed the earlier budget changes, emphasized that the gambling duty should reflect the potential harm a vertical can cause. Ballinger agreed with this argument, championing a potential tax hike.
Ballinger Proposes Overhauling the Gambling Act
In addition to supporting the SMF’s proposal, Ballinger also floated the idea of a new Gambling Act. He argued that the law should catch up to emerging verticals and broader changes within the gambling industry.
Ballinger was fairly optimistic that a tax hike and a new Gambling Act were on the table due to recent shifts in British politics. For reference, Keir Starmer just resigned, with one of his potential successors being Andy Burnham, MP for Makerfield.
Ballinger stated that Burnham is familiar with the gambling industry and suggested that he would back a category B gambling machine tax hike, should he become the next PM. Ballinger elaborated that the rumored PM candidate is also known to care about issues that are not always talked about, such as gambling and asserted that increasing the machine gaming duty could be an “easy win.”
At the same time, Ballinger acknowledged the fact that a new Gambling Act would be a more difficult endeavor that would surely take time. However, he remained adamant that changes are needed, claiming that the recent reforms are only “scratching the surface.”
In any case, further tax hikes and regulatory changes could spell trouble for the UK gaming sector. The industry has been experiencing headwinds due to the white paper proposals and last autumn’s tax hikes, with representatives warning that making the legal industry less competitive will only end up empowering the black market.