Gaming Tax Hike Threatens UK Venues: Rank Warns of Mass Closures!
Gaming Tax Hike Threatens UK Venues: Rank Warns of Mass Closures!
Mecca Bingo & Grosvenor Casinos owner Rank Group warns a 40% gaming machine tax hike could shutter a third of its venues and endanger 2,000 jobs across the UK. Discover the potential social and economic impact.
The Rank Group, owner of popular leisure brands like Mecca Bingo and Grosvenor Casinos, has issued a stark warning: a proposed increase in gaming machine tax could force the closure of a third of its venues across the UK. This potential hike in duty from the current 20% to 40% would render many sites "unviable" and put approximately 2,000 jobs, roughly 30% of its UK workforce, at significant risk.
The government is reportedly considering this substantial increase in machine games duty, which applies to profits from fruit machines, roulette machines, and other slot machines. While a think tank, the Social Market Foundation, suggests this move could boost tax revenues by around £450 million, Rank's chief executive, Richard Harris, believes the repercussions would be severe.
He emphasized that beyond the immediate job losses, the closure of bingo halls, in particular, would have a considerable social impact on local communities. Mr. Harris highlighted that regions in the North of England would be particularly vulnerable to these closures.
This warning comes amidst a challenging period for the gambling sector, which has already faced increased financial pressures from prior tax adjustments, including a rise in remote gaming duty earlier this year and increases in national insurance contributions.
Rank has already closed nine bingo venues over the past year due to high labour costs and household budget pressures.
The industry-wide concern is palpable, with other major operators echoing Rank's sentiments. Ladbrokes owner Entain recently announced plans to cut around 400 jobs globally, cautioning of more if the machine games duty were to double.
Similarly, Betfred decided to shut 132 shops and eliminate over 600 jobs in response to increased taxes.
This potential tax increase adds another layer of uncertainty and threat to a sector already grappling with significant operational and financial challenges.
