- A proposal backed by the Social Market Foundation could raise up to £460 million through higher taxes on high-stakes slot machines.
- Andy Burnham has repeatedly called for tighter controls on adult gaming centres, accusing them of targeting vulnerable communities.
- Gambling stocks slipped after reports suggested a future Burnham-led government could consider tougher taxation.
A proposal that could increase taxes on Britain's slot machine operators and casinos by up to £460 million has put the gambling industry back under the spotlight, with investors also reacting to reports that Andy Burnham could pursue tougher measures if he becomes Prime Minister.
The proposal, put forward by the Social Market Foundation (SMF), recommends doubling Machine Games Duty (MGD) on higher-stakes Category B gaming machines from 20 per cent to 40 per cent. According to the think tank, the change could generate between £275 million and £458 million in additional tax revenue on top of the roughly £600 million the sector already contributes each year.
Growing scrutiny of high street 'slot sheds'
The proposal focuses on adult gaming centres (AGCs), often referred to as "slot sheds", which have expanded rapidly across UK high streets in recent years. Critics argue these venues are increasingly concentrated in economically deprived communities and encourage harmful gambling.
Burnham has previously criticised AGCs for "targeting some of the most vulnerable in our communities", as quoted in media reports. He has also supported calls to give councils stronger powers to restrict new gambling premises and backed proposals to raise more tax revenue from the gambling sector.
Polling commissioned by the SMF found 43 per cent of respondents would support a future Labour government increasing taxes on adult gaming centres.
The proposal would apply to Category B gaming machines, which allow players to stake £2 every 2.5 seconds. Lower-stakes Category C and D fruit machines commonly found in pubs would remain outside the proposed tax increase.
Industry warns of jobs risk as investors react
The proposed tax rise has drawn strong opposition from the gambling industry, which argues it could damage businesses and reduce employment.
Bacta, the trade body representing adult gaming centres and amusement arcades, reportedly described the proposal as "fantasy economics and grossly irresponsible". The organisation warned that increasing Machine Games Duty to 40 per cent could force businesses to close, weaken high streets and push some customers towards unregulated gambling operators.
The Betting and Gaming Council also warned that any increase in duty could put jobs at risk and affect betting shops that continue to support local economies.
The proposal also unsettled investors. Shares in Entain, owner of Ladbrokes and Coral, and casino operator Rank Group fell after reports of the proposed tax changes emerged. Entain shares dropped around 2 per cent, while Rank Group also declined by about 2 per cent. Shares in Flutter Entertainment were little changed, while Evoke, owner of William Hill, edged slightly higher.
The proposal is not government policy, and no decision has been announced. However, it adds to growing political pressure on the gambling industry, particularly as concerns continue over the rapid expansion of adult gaming centres and their impact on vulnerable communities.
