Hike in gaming machine tax could put third of venues at risk, warns Rank

Casino and bingo hall operator Rank Group has warned that a third of its venues could face closure if the Government opts for a sharp increase in gaming machine taxes at next month’s Budget.

The Mecca Bingo and Grosvenor Casinos parent firm also warned that around 30% of its UK workforce, around 2,000 workers, would be affected.

The Government is reportedly considering an increase in the rate of machine games duty, which is the tax on fruit machines, roulette machines and other slot machines.

Currently, operators pay a 20% tax on profits from the machines.

Rank also run Grosvenor casino venues (Mike Egerton/PA)

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However, the Social Market Foundation think tank indicated that the Government could increase tax revenues by around £450 million by increasing this to 40%.

Richard Harris, chief executive of Rank, told the Press Association that an increase to 40% would make swathes of its estate “unviable”.

“We have a healthy business, but if it went to 40% about a third of our estate would have to close,” he said.

“Jobs would be at risk and it would have a big impact to local areas by hitting workers, but losing bingo halls would have a social impact, too.

“There are other operators who wouldn’t just be looking at shutting venues but wouldn’t have a future at all.”

He stressed that any increase would put the future of a number of its venues in doubt, highlighting that sites in the North of England would be particularly affected.

Mecca Bingo (Alamy/PA)

It comes after remote gaming duty, the tax on online casino and slots, was increased from 21% to 40% in April this year, following changes announced at last year’s autumn budget.

It was part of a range of changes which also saw the removal of bingo duty, which had been a levy of 10%.

Mr Harris said the group has already come under pressure from recent tax changes, including increases to national insurance contributions.

The company has already closed nine bingo hall venues over the past year amid high labour costs and pressure on household budgets.

The warnings come after a raft of closures and job losses across the UK gambling sector over the past year.

Earlier this month, Ladbrokes owner Entain revealed plans to cut around 400 jobs worldwide in the face of higher taxes and warned more could be at risk if the Government was to double machine games duty.

In July, Betfred said it was set to shut 132 shops and cut more than 600 jobs from September, partly in response to an increased impact from taxes.