The UK government has been hit with criticism over ‘a stealth tax on land-based casinos’.
Following the Autumn Statement, which saw a multitude of tax cuts and was one many viewed as the Conservative government posting themselves for an upcoming election, the Betting and Gaming Council urged the government to rethink its stance on retention of tax bands for land-based casinos.
The trade body emphasised that the lack of attention paid to inflation when it comes to the casino sector is essentially creating a £5m annual tax increase across BGC land-based casino members.
Specifically, the body highlighted the Gaming Duty Bands applied to UK casinos, which have been frozen again and will not rise with inflation, increasing the economic strain for casinos.
The freeze on tax bands was initially announced in March, but the BGC had held hopes that the freeze would be reconsidered to better reflect inflation rises.
According to the BGC, the freeze on Gaming Duty Bands is expected to cost casinos £25m over the next five years.
BGC CEO, Michael Dugher, said: “Freezing Gaming Duty Bands is a stealth tax which has the potential to slow recovery and weaken future growth.
“Removing it would have provided a welcome boost for the land-based casino sector at a crucial time.
“Instead, the decision to maintain the status quo represents a missed opportunity for companies ready and able to generate jobs and investment across the country.
Dugher added that casinos are waiting for “modest but mission-critical policy changes” from the government’s white paper. He stated that if the freeze was reconsidered, it would allow casino businesses to grow.
“It seems short-sighted to maintain this stealth tax while failing to make changes that will allow casinos to hire and grow. The BGC urges a re-think so Gaming Duty Bands can be moved with inflation at the next opportunity.”
Meanwhile, in welcome news for the hospitality and the leisure sector, alcohol duty was frozen until August 2024.
The government also pledged a significant amount to ensure that the UK continues to surge in the development of AI.
Integral to this growth is the £500m investment into the sector, which many will hope leads to regions thriving in the growth of the tech.
Sarah-Jayne van Greune, Chief Operating Officer at Payen & ILIXIUM, emphasised the importance of it being spread across regions to ensure maximum impact.
She said: “We need investment in all pockets of the UK. From Reading to Leeds and Birmingham to Basingstoke, companies up and down the country need to benefit from the investment. The UK has tech pioneers spanning the country that – with access to the right funding – will be able to pioneer solutions that will drive productivity beyond belief. AI, when ethically used, accelerates what humans are capable of.
“Computers can think and analyse faster and more accurately than people, taking onerous tasks onto their digital shoulders and leaving humans the time to be more creative. Yet, the investment should be equal across all of the UK if we’re to truly become an AI leader.”
