The Gambling Business Group has written to Chancellor John Healey expressing “genuine concern” on behalf of members regarding a potential hike in MGD in the upcoming Budget, highlighting the numerous ways in which the increase would impact land-based venues as well as pubs, and “fly in the face of the Government’s growth agenda.”
The Gambling Business Group has written to Chancellor John Healey urging him to disregard proposals to increase MGD in the upcoming Budget, warning that any increase would have a devastating impact on jobs, local communities, and the sector’s total tax contribution.
In a letter sent on 8 September, CEO Peter Hannibal identified the negative impact the rise would have, particularly at a time when changes to local licensing authority powers and the uncertain economic climate are causing widespread damage to the gaming and amusement industry.
“Land-based gambling businesses are still struggling to recover post-Covid,” said Hannibal. “The added impact of employer NIC and NMW rises, inflation and the highest energy costs on record have led to the closure of businesses (over 500 betting shops alone since the last Budget, with more closures pending), which flies in the face of the Government’s growth agenda.”
“From your discussions with the DCMS, I am sure that you are aware of the impact on our Members’ businesses and the wider land-based community if the rates of MGD were to rise.”
The letter lists the ways in which increasing MGD will adversely affect the sector, including closed pubs, gaming venues, and bingo halls, a drop in employment, vacant high street premises, and a reduction in the £4bn total tax currently delivered to the Treasury.
“The other big risk of regulated businesses closing is the migration to illegal gambling. If more premises are forced to close for economic reasons (or are refused to be allowed to open in the first place), then more consumers will turn to online gambling, which brings them one step closer to the growing online illegal gambling market.”
High street exit on the cards
Peter Hannibal said… “If more premises are forced to close for economic reasons (or are refused to be allowed to open in the first place), then more consumers will turn to online gambling, which brings them one step closer to the growing online illegal gambling market…
