The government previously said that the introduction of Machine Games Duty (MGD) was not intended to be a revenue raising measure and the gaming industry will struggle to understand how a duty rate of 20% marries with the governments previous statements. Additionally, compliance costs, which will by the government’s own estimates, cost £85m, will severely affect small to medium-sized operators.
At this point, we are worried that the government is looking more and more like some continental European countries that are using the gambling industry as an ATM machine, at the expense of jobs and innovation. GBGC hopes that the government will listen to the industry in regards to the implementation of a place of consumption tax and avoid any further drastic tax changes that could drive the industry to the wall or introduce illegal gambling to Britain.
Warwick Bartlett, CEO of Global Betting and Gaming Consultants (GBGC), said:
“Furthermore, while the government reduced the 50% tax rate on top earners, it has the left the 50% tax on casinos. GBGC agrees with the government that 50% tax is high on any sector of the economy, casinos included”.