The UK’s Betting and Gaming Council (BGC) has come out strongly against a proposed hike in the machine games duty (MGD), branding it a “damaging policy.” The BGC argues that increasing the duty would burden the already struggling British gaming sector.
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BGC Opposes Doubling of Machine Games Duty
The proposed change, put forth by the Social Market Foundation (SMF), suggests doubling the MGD from 20% to 40%. The SMF claims that gaming taxes should reflect the social harm these activities purportedly cause. Yet, the BGC fiercely disagrees. A spokesperson for the council stated, “We fundamentally oppose any increase in the MGD,” criticizing the proposal as unjustifiable. According to the BGC, gaming machines in locations like bingo clubs and casinos contribute to the economy, supporting 109,000 jobs and injecting billions into the national coffers. The council fears that doubling the duty won’t protect these contributions. Instead, it could result in venue closures, job losses, and damage to high streets—a scenario the BGC argues would only benefit illegal operators who avoid taxes and lack consumer safeguards.
Lack of Impact Assessment in SMF Proposal
One of the BGC’s biggest criticisms of the SMF’s proposal is the absence of an impact assessment. The BGC points out that the SMF failed to quantify how the duty increase could negatively affect regulated venues and the wider community. This oversight comes despite the SMF’s polling, which the BGC claims shows that most Brits oppose further tax hikes. The council’s response underscores the importance of evidence-based tax policies that consider their impact on jobs, investment, and local communities. They argue that without such consideration, regulatory changes could push consumers toward the black market, a risk the BGC has flagged repeatedly.
Regulatory and Market Context
This is the latest instance of tension between policymakers and the gaming industry in the UK. The proposal aligns with a pattern of regulatory scrutiny that’s increased over recent years. While efforts to curb gambling harm are vital, industry insiders argue that heavy regulation could stifle legal operators and inadvertently fuel underground markets. That’s a tough sell for operators already squeezed by rising taxes. The timing of this proposal is also notable, coming just ahead of the government’s autumn budget review, which could bring additional fiscal pressures. But the board is expected to consider the proposal and its ramifications in the coming months, amid ongoing debates about regulation and taxation in the UK’s gaming sector.
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