Raising gaming machine tax could put 3,800 casino jobs at risk, report warns
Currently, operators typically pay a 20% tax on profits from the machines.
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operators → raise → machines
However, the Social Market Foundation think tank previously indicated the Government could increase tax revenues by around £450 million by raising this levy to 40%.
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Government → indicate → %
A report by the Night Time Industries Association (NTIA) found increasing machine games duty to 40% could put 34 casinos and 3,800 jobs at risk.
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increasing → find → risk
The research, which uses modelling by consulting company EY, also found £100 million of planned investment and £73 million of tax receipts could be threatened.
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million → use → receipts
Some 14,000 people work in the casino sector in Britain, across 108 licensed premises, according to the report.
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people → work → report
The report said: “The modelling is not a prediction that these outcomes will inevitably occur.
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outcomes → say → ?
“It does, however, demonstrate why the effects of further taxation should be assessed across the whole physical business model.
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effects → demonstrate → model
“A reduction in venue profitability can affect capital investment, staffing, suppliers and the ability to develop the hospitality and entertainment offer that recent regulatory changes were designed to encourage.
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changes → affect → that
“Government should therefore assess future fiscal measures against their cumulative impact on investment, employment, local economic activity and venue viability — not solely their anticipated direct tax yield.”
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Government → assess → investment
Joe Brown, head of gaming at Metropolitan Mayfair, said: “For me, the biggest issue is the cumulative effect of regulation, taxation, employment costs and banking restrictions rather than any single measure.”
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issue → say → measure
Casino and bingo hall operator Rank Group previously warned that a third of its venues could face closure if the tax hike went ahead.
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hike → warn → closure
The Mecca Bingo and Grosvenor Casinos parent firm also said around 30% of its UK workforce, around 2,000 workers, would be affected.
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% → say → workforce
The report further found the economic value of casino visits goes beyond the venues themselves, with casinos acting as “anchors” of the local economy.
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casinos → find → economy
A survey of 1,442 respondents across two weeks in September and October, included in the research, found 55% of polled casino customers probably or definitely would not otherwise have visited the local area.
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% → include → area
It also found 72% of customers used at least one other listed business in the area of the casino, including a restaurant, hotel or parking.
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% → find → restaurant
Michael Kill, NTIA chief executive, said: “Britain’s high streets need businesses that give people a reason to leave home and spend time in our towns and cities.
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that → say → towns
“More than four in 10 surveyed casino customers would otherwise have stayed at home, and almost three-quarters used another local business.
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quarters → survey → business
“Modern casinos support jobs, hospitality, entertainment and neighbouring businesses.
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casinos → support → jobs
“That contribution deserves recognition in the national conversation about high-street regeneration.”
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contribution → deserve → regeneration
Alex Oswald, managing director at Metropolitan Gaming, added: “Casinos are increasingly part of a much broader hospitality and entertainment experience.
“They attract visitors into town and city centres, supporting neighbouring restaurants, bars, hotels and other local businesses.
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They → add → restaurants
“This research demonstrates why we should look beyond the gaming floor when assessing the contribution of modern casino destinations.”
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we → demonstrate → destinations
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