Bacta says UK machine duty rise threatens seaside arcade income
Regulation2 min read
The UK’s increase in Machine Games Duty from 20% to 25% for higher-value category B machines does not protect all seaside arcade income, the British Amusement Catering Trade Association said. Category C machines remain taxed at 20% and category D machines at 5%; Bacta said income from category B machines in adult gaming centre sections helps support wider arcade operations, but it has not yet assessed how many machines will face the higher rate.
Machine Games Duty is rising from 20% to 25% solely for higher-value category B gaming machines, according to the British Amusement Catering Trade Association (Bacta). Many traditional seaside arcades depend on revenue from those machines to sustain their broader operations. The association said the chancellor’s attempt to shield pubs and seaside amusements did not fully reflect how coastal businesses operate.
Seaside arcades can license a walled-off area as an adult gaming centre, whereas pubs are legally limited to category C or D machines. The Gambling Commission limits category B machines to no more than 20% of the machines in an arcade’s adult section. Revenue from those sections sustains the other machines and helps businesses stay open and retain staff during quieter winter months, Bacta said. The association is assessing the implications for its membership and cannot yet give a figure for seaside arcade machines falling into the 25% MGD bracket.
A June policy proposal from the Social Market Foundation called for MGD to double from 20% to 40%. Written by chief economist Gideon Salutin and senior researcher Richard Hyde, the proposal called for a separate tax band for category B machines, with no change for categories C and D. After 90 Labour MPs signed a letter supporting a rise, Bacta warned that the proposals would harm the British seaside and cost jobs. Independent bookmaker Jennings Bet suggested that a 40% rate would have meant closing nearly half of its retail estate.
Bacta said it would continue to make its case to the Treasury and seek clarification on the effect on businesses operating family entertainment and adult gaming facilities.