New Gaming Machine Tax Criticized
Thursday, March 22nd, 2012The UK Government has just increase the tax on gaming machines across the country, and operators are not impressed. It is yet another decision from the UK government to extract even more funds from the country’s gambling market, but it comes at the expense of gaming clubs.
The new Machine Games Duty will replace the existing VAT and Amusement Machine License Duty. It will result in a 3% increase for club operators, which will accumulate over time. When the government makes small tax increases, the change seems very minimal, but over the course of a year, it can result in some huge losses for the industry.
For example, companies like William Hill and Ladbrokes will lose over £10 million each as a result of the new tax. It will also cause the loss of over 1000 jobs and the possible closure of 2000 venues.
Some operators believe that the tax increase will mean the end of the amusement gaming market in the UK. However, this may be what the government had in mind, as residents have been complaining about the increase in betting shops and gaming clubs on high streets recently.

