Arcades and bingo halls raise duty concerns

5 hours ago

Josh McLaughlin,South Eastand

Chrissie Reidy,in Dymchurch

Sarah Calakovic said a five per cent rise in Machine Games Duty could put two in five of Buzz Bingo clubs into "loss-making territory"

BBC Sarah Calakovic sits in from of a row of slot machines. She is wearing glasses and a blazer. — Sarah Calakovic said a five per cent rise in Machine Games Duty could put two in five of Buzz Bingo clubs into "loss-making territory"

Bingo hall and amusement arcade operators have warned they could be forced to close if gambling taxes rise in the Budget.

It comes as a group of 90 Labour MPs co-signed a letter to Chancellor John Healey, calling for him to raise the Machine Games Duty (MGD) on Category B machines. These give cash prizes, such as slot, fruit and quiz machines.

Sarah Calakovic, regional manager at Buzz Bingo in Medway, Kent, told BBC South East a 5% rise could "put 40% of our clubs into loss-making territory".

A HM Treasury spokesperson said tax decisions would be announced in Budget statements and it does not comment on "speculation or proposals".

The Budget will be unveiled by Chancellor John Healey on Wednesday.

Rachel Reeves, the previous chancellor, abolished bingo duty during last year's announcement which came into effect from April and was welcomed by the bingo industry.

The letter to the chancellor from Alex Ballinger, MP for Halesowen, said "lower-category machines would remain unaffected" with pubs "wholly outside its scope", since they cannot hold Category B ones.

Problem gambling

The case for the MGD increase has been made by the Social Market Foundation (SMF) think tank.

Gideon Salutin, its chief economist, said he wanted to see government action in combating problem gambling to compensate "costs associated with gambling".

He told the BBC: "Whether that's the crime and anti-social behaviour that tends to cluster around high street betting shops, the extra welfare costs or the cost of housing when somebody loses their home.

"We calculate that the state covers about £700m in additional costs associated with gambling every year."

The Bingo Association said SMF's proposal, which would double MGD for affected machines from 20% to 40%, would make 102 clubs become loss-making.

Calakovic said: "Bingo is our main product and absolutely the reason why 3,500 people walk through our doors every week.

"However, machines are our secondary income stream and are very important to our clubs."

Mark Woolls said his family arcades would struggle over the winter without the income of his separate adult-only gaming centres

Chrissie Reidy/BBC Mark Woolls stands in front of a collection of arcade machines. He is wearing a quarter-zip jumper. The machines have illuminated signs. — Mark Woolls said his family arcades would struggle over the winter without the income of his separate adult-only gaming centres

Mark Woolls, who runs family arcades and separate adult-only gaming centres in Deal and Dymchurch, said: "At the moment, they're looking at us like we're a casino, but we're not."

He told the BBC the adult-only rooms with slot machines, where the maximum stake is £2, cross-subsidise the family arcades at a time when he has seen increases to Minimum Wage and energy bills.

"Some amusements would close down. Some are running by a tight string at the moment," he added.

Donna Curd, manager at Dymchurch Amusements Arcade, one of Woolls' businesses, said venue closures for the industry would be "devastating".

She said that not only do "children love coming here" as a day out, but it was also a "first full-time job" for a number of people.

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