The British government is being encouraged to expedite its modernization strategies for the gambling industry, or face the possibility of further job cuts and business shutdowns in 2024.
David Williams, a spokesperson for the Rank Group, highlighted in an article for the Betting and Gaming Council (BGC) that proposed modifications that benefit the industry must be enacted to ensure its continued existence.
Williams advocated for these alterations to be implemented prior to the effect of the national minimum wage increase and the freeze on casino tax rates, which the BGC asserts will cost the industry £5 million annually.
Williams, Head of Public Affairs at Rank, indicated that the industry can only withstand these elevated expenses if the policies outlined in the white paper are put into effect first.
These policies involve altering the distribution of gaming machines and permitting casinos to offer sports wagering. Williams added that another crucial change is expanding electronic payment methods.
Williams believes that the industry needs to modernize to boost income and help absorb expenses. “This is the only practical sequence of events,” he stated.
Williams stated: “These enhancements are critically necessary, which is why the industry is urging the government to keep up the strong pace in addressing the land-based gambling consultation, to create the required legal documents, and to finalize legislation in the first half of 2024. All of this requires time, and while time is crucial, we are running out of it.
“We are playing catch-up with the rest of the globe in terms of casinos and the wider gambling environment. We can only begin to modernize and make our casinos more appealing once legislation is in place.”
The BGC has charged the UK government with imposing a hidden tax of £5 million on casinos.
In November 2023, the BGC accused the UK government of imposing a hidden tax on casinos. This is projected to cost the industry £5 million annually.
The accusation relates to the freeze on gambling tax rates outlined by Chancellor Jeremy Hunt in his Autumn Statement. The BGC said in a statement that the land-based casino industry had hoped to see these rates increase in line with inflation.
The BGC said that the freeze on gambling tax rates will actually result in an additional £25 million in taxes for casinos over the next five years.
BGC chief executive Michael Dugher previously stated that this hidden tax could potentially slow down recovery and hinder future growth.
“Removing it would provide a welcome boost to the land-based casino industry at a critical time,” he said.
In contrast, the choice to keep things as they are overlooks the chance for companies to create jobs and invest across the nation.
The BGC highlights that casinos contribute £300 million in taxes each year, and the industry generates an estimated £800 million in total worth across the economy annually.
However, casinos have been significantly affected by difficulties such as the rising cost of living. The BGC observes that four casinos have shut down in recent months, and the industry employs 25% fewer workers compared to four years ago. Since 2005, a quarter of casinos have closed, leaving only 117 nationwide.
UK White Paper Discussion
The Gambling Act Review White Paper, published in April, outlines how the UK regulates gambling. The Gambling Commission is currently examining several proposals outlined in the White Paper. The first round of discussion began in July.
The BGC generally supports the government’s gambling White Paper, particularly in relation to casino reform. The White Paper includes suggestions on affordability checks, sports betting, and machine numbers.
The first round of discussion concluded in October, focusing on financial risk and vulnerability, as well as improving age verification in physical locations. Over 3,000 responses were received in total.
The next round of discussion will consider seven topics, including opt-in online bonuses.
Timothy Miller, the policy enforcement leader for the committee, stated that the group will be shutting down in February or March.
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