The Betting and Gaming Council (BGC) has raised concerns about the freeze on Gaming Duty Bands imposed on UK land-based casinos. This freeze, confirmed in the Autumn Statement, means that the duty bands will not grow with inflation, resulting in a £5 million tax increase per year for BGC member casinos. In this article, we delve into the impact of this freeze on the struggling casino industry, the importance of casinos in the UK economy, and the call for a re-evaluation of the Gaming Duty Bands to support recovery and future growth.
The Impact of Gaming Duty Bands Freeze
Understanding the consequences of the freeze on Gaming Duty Bands for UK land-based casinos
The freeze on Gaming Duty Bands, as confirmed in the Autumn Statement, has raised concerns within the UK land-based casino industry. This freeze means that the duty bands will not grow with inflation, resulting in a significant tax increase for casinos that are members of the Betting and Gaming Council (BGC).
With the freeze in place, land-based casinos face a £5 million tax increase per year. This additional financial burden comes at a time when the industry is already grappling with challenges such as energy expenses, salary increases, and high inflation. The lack of adjustment for inflation puts a strain on the recovery and future growth of these casinos.
The Importance of Land-Based Casinos in the UK Economy
Highlighting the significant contributions of land-based casinos to the UK economy
Land-based casinos play a crucial role in the hospitality and tourism sector, employing over 10,000 individuals and serving millions of visiting clients each year. These establishments contribute £300 million in taxes annually and add an estimated £800 million per year to the Gross Value Added (GVA) of the economy.
However, the economic challenges faced by the industry, including the impact of the pandemic, have led to job losses and closures. The number of casinos in Great Britain has decreased from 160 in 2005 to 117 in the present year. This decline, coupled with a 25% decrease in casino employment, paints a concerning picture for the future of land-based casinos.
Struggles Faced by the Casino Industry
Examining the difficulties encountered by land-based casinos in the current economic climate
The casino industry has been grappling with various challenges that have hindered its recovery and growth. Factors such as energy expenses, salary increases, and high inflation have put a strain on the financial viability of land-based casinos.
The impact of the COVID-19 pandemic has further exacerbated these challenges, leading to closures and job losses. Notably, iconic establishments like Crockfords in Mayfair, the oldest casino in the country, have been forced to shut their doors. The decrease in the number of casinos and employment within the industry is a cause for concern.
The Call for Re-evaluation of Gaming Duty Bands
Advocating for a reconsideration of the freeze on Gaming Duty Bands to support casino recovery and growth
The Betting and Gaming Council (BGC) has expressed disappointment with the freeze on Gaming Duty Bands. The council's CEO, Michael Dugher, has referred to it as a stealth tax that could hinder the recovery of land-based casinos and weaken future growth.
The BGC is urging the Chancellor to re-evaluate the Gaming Duty Bands and ensure they can be adjusted with inflation in the future. The freeze is projected to cost casinos £25 million over the next five years, posing a significant financial burden on an industry that already faces numerous challenges.
The Risk of Unregulated Gambling Market
Highlighting the potential dangers of driving customers towards the unregulated gambling market
The BGC collaborates closely with regulators and the government to ensure that any changes in the industry do not drive customers towards the unregulated and dangerous black gambling market. In recent years, the number of people engaging in unregulated gambling has doubled, with billions of pounds being wagered.
By advocating for fair regulations and a supportive environment for land-based casinos, the BGC aims to protect consumers and maintain a thriving, regulated gambling industry in the UK.