The owner of Grosvenor Casinos and Mecca Bingo has claimed that bingo halls and casinos around the country are at risk of closure if further gambling taxes are introduced.
Recent UK tax increases have seen the rate of remote gaming duty increased from 21% to 40% from the start of April, while there will be a new rate of general betting duty introduced in 2027.
And research from The Social Market Foundation suggests that doubling machine games duty (MGD) from 20% to 40% could increase the tax take from £2-a-spin slot machines alone by between £275m and £458m, reports the Guardian.
Rank Group, owner of both well-known UK gambling brands, said that any increase to MGD “will further impact venue viability across both Grosvenor and Mecca and will lead to a reduction in tax receipts within 12 months”.
This comes despite the government having scrapped a tax on physical bingo halls earlier this year, with the popularity of gambling machines at Mecca Bingo’s sites meaning the company could also take a hit from any MGD tax increases.
Rank Group CEO Richard Harris explained that “tax proposals from anti-gambling campaigners continue to cast clouds” over the gambling industry, despite it being “a regulated industry that is proud to support jobs across the country [and] deliver great hospitality experiences to millions of customers”.
He added that further taxes would mean that “much-loved bingo halls and casinos will be forced to close, impacting customers in local communities”.
While Rank Group posted a five per cent increase in gaming revenue – to £835m – in the year to June, pre-tax profit slipped by 15 per cent to £39m, reports DevonLive.
And the company has recently been cutting down the number of Mecca Bingo halls in the UK, explaining that it has given them “a much healthier estate of core clubs and flagship venues, well-placed to compete more effectively in their marketplaces”.