Gambling Industry Warns of Job Losses and Venue Closures Amid Tax Hike Fears

The UK gambling industry faces potential upheaval as operators of bingo halls and betting shops voice grave concerns over a possible tax increase on slot machines. Industry leaders warn that a proposed doubling of the duty on slot machines, from 20% to 40%, could lead to the closure of numerous venues and the loss of thousands of jobs across the country.

Richard Harris, chief executive of Rank Group, which operates Mecca Bingo and Grosvenor casinos, stated that such a tax hike would cost his company £35 million and make between a quarter and a third of its venues unviable. This could result in the loss of up to 25% of Rank's 6,500-strong UK workforce, approximately 1,625 jobs. Harris noted that many of the affected sites and jobs are located in Red Wall constituencies in northern England.

Dominic Mansour, chief executive of Buzz Bingo, echoed these concerns. He warned that even a modest increase in the machine games duty from 20% to 25% would render about a third of their clubs loss-making, jeopardizing investment programs and leading to difficult decisions about clubs and jobs. A blanket increase to 40%, he cautioned, risks undermining the positive impact of the recent abolition of bingo duty.

These warnings come in the wake of comments from the boss of Ladbrokes and Coral owner Entain, who suggested that a doubling of machine games duty could lead to the closure of 1,470 betting shops, resulting in the loss of 15,900 jobs. The industry has already seen around 5,000 jobs lost at bookmakers since a previous increase in remote gaming duty and the levy on online sports betting.

Bingo halls, pubs, working men's clubs, and seaside arcades rely on revenue from slot machines. Industry executives argue that increasing the tax rate would not only make venues unprofitable but could also lead to a decrease in overall tax revenue. Harris asserted that within 12 months of a tax rate increase, the government's tax take would likely decrease.

Operators emphasize that bingo clubs are more than just gambling venues; they are community hubs. Mansour highlighted that for many members, a visit to their local club is an affordable social outing and an opportunity to connect with others, particularly in an era of rising living costs and social fragmentation. He pointed to research indicating that seven in ten bingo players participate to socialize, and almost 90% consider it a good way to spend time with other people.

Rank Group's Harris added that casinos are an important part of the nighttime economy, which has faced significant challenges in recent years. He expressed concern for his staff, many of whom work in constituencies targeted by the government.

A Treasury spokesman stated that the Chancellor is focused on supporting families and businesses, driving growth, and adhering to fiscal rules. The spokesman added that decisions on taxation are matters for the Chancellor to announce at fiscal events and that the department does not routinely comment on speculation.