The United Kingdom’s Betting and Gaming Council has responded to recent calls for an increase in the machine games duty (MGD). The council criticized the proposal, asserting that it is a “damaging policy” that would put further strain on the British gaming sector.
BGC Opposed the SMF Proposal
For reference, the Social Market Foundation (SMF) just proposed doubling the MGD from 20% to 40%. The foundation argued that the taxes gaming verticals pay should be proportional to the social harm they cause. The SMF also emphasized that the MGD avoided the Autumn Budget tax hikes, arguing that it is only logical to align with to other duties.
However, the BGC begged to differ, with a spokesperson saying that the council “fundamentally opposes” any increase in the MGD. The spokesperson slammed the proposal as a “damaging policy” and said that nothing in the SMF’s report truly justifies it.
The BGC spokesperson emphasized that gaming machines across bingo clubs, betting shops, casinos, working men’s clubs, and miners’ welfare clubs are crucial contributors to the British economy. According to the council, the broader gaming sector supports some 109,000 jobs across the country and contributes billions to the UK economy, while providing “valued leisure venues” for the millions of Brits and tourists seeking to enjoy betting responsibly.
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
SMF Did Not Quantify the Adverse Effects of Its Proposal
The spokesperson also noted that the SMF’s report did not even attempt to quantify the adverse effects of its proposal. In addition to empowering the unregulated sector, the measure could lead to venue closure and job losses, the BGC argued – things that the SMF didn’t take into account.
The BGC spokesperson added that the SMF report’s own polling suggests that the majority of Brits oppose further tax hikes.
The BGC response concluded that tax policy changes should be based on evidence and proportionate, while taking into account the impact they might have on jobs, investment, consumers and communities.
The response is consistent with earlier BGC warnings that harsh regulations and tax policy could make the legal sector less competitive, allowing the black market to reign supreme.