Bacta says 120 family firms warn Chancellor over machine tax rise
Bacta, the trade association for the UK amusements industry, said 120 independent, family-run operators and suppliers have written to the Chancellor warning that any rise in Machine Games Duty could force venues to close.
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Bacta, the trade association for the UK amusements industry, said 120 independent, family-run businesses from the amusement, bingo and leisure sectors, along with the manufacturers and suppliers that support them, have signed an open letter to the Chancellor of the Exchequer opposing any increase to Machine Games Duty (MGD).
According to Bacta, the letter calls for MGD to remain at its current rate of 20 percent, warning that a rise would threaten thousands of jobs, many in areas of high unemployment, and damage high streets and coastal communities including Blackpool, Skegness, Margate, Great Yarmouth, Porthcawl, Rhyl and Portrush.
Bacta said the letter states that because stake and prize levels are set by law, operators cannot raise prices to offset rising costs such as energy bills, commercial rents, wage inflation and higher employer National Insurance contributions. It added that operators cannot offset MGD against VAT, which Bacta said amounts to double taxation, and that non-recoverable VAT across the sector reached 56 million pounds in 2025.
Bacta said the letter argues that income from gaming machines during peak season allows operators to maintain full-time staff through winter, and that closures would harm local supply chains including British manufacturers, cleaning and security firms, food and beverage suppliers and taxi firms.
Bacta said the letter also points to enforcement action last summer, supported by the Gambling Commission, against illegal gambling premises, and argues that squeezing regulated venues out of the market would push vulnerable players toward unlicensed alternatives with no safeguards.
Joseph Cullis said: “An increase in Machine Games Duty would put jobs, livelihoods and the future of longstanding family businesses at serious risk. For some, it could be the final straw.”
Source: Bacta.