BACTA, the trade association for the UK amusement and gaming sector, is seeking to persuade the Treasury to introduce a temporary reduction in Machine Games Duty (MGD) as the sector tries to mitigate to cost of the introduction into circulation of the new GB£ 1 coin in 2017.
The Royal Mint estimates that around 3% of GB£ 1 coins in circulation are counterfeit and the Chancellor announced in his Budget that a new twelve-edged coin would be brought into circulation in 2017. The implication for the gaming sector is that all coin mechanisms have to be converted to accept the new coin.
BACTA chief executive John White explained why his organisation will be seeking the temporary MGD relief:
“We can’t pass on any cost in the amusements industry. We’re constrained not only by the coinage itself but also by having a maximum stake. So any time there’s a cost increase, it just comes straight off the bottom line”.
It is estimated that the cost of switchover could be as much as GB£ 100 million.