As the broadly based leisure industry shoulders the highest tax burden in the UK economy, MERKUR UK’s Sascha Blodau points out the impact on a sector which cannot pass on costs to its customers and is still waiting a review of stakes and prizes.
MERKUR UK has joined leading organisations including UKHospitality, and the British Beer and Pub Association by warning of the damaging consequences arising from the sector’s huge tax burden which it claims is the highest in the UK economy.
Speaking on April 1st, the day that hospitality businesses faced billions of pounds in additional costs, MERKUR UK General Manager Sascha Blodau said: “UKHospitality is absolutely correct in saying that tax levels are suffocating leisure businesses – a sector which given a more business-friendly environment has the capacity to play a major role in driving the government’s economic growth agenda”
He continued: “The circumstances facing businesses in the land-based gaming entertainment sector are compounded by the absence of a stake and prize review – a review which hasn’t taken place for over a decade – and the fact that they are unable to pass on costs to consumers. This perfect storm means that additional costs can only come from profit which in turn reduces the amount of corporation tax paid to the Exchequer.”
Research conducted amongst UKHospitality members showed that 64 percent of businesses will cut jobs, 51 percent will cancel investment plans with 42 percent reducing trading hours – all as a direct result of April’s increases.
Applying those outcomes to the gaming sector, Sascha Blodau confirmed: “There’s no doubt that the additional costs will affect the industry’s ability to invest in new venues particularly on the high street. Having fewer hospitality business on the high street discourages footfall which in turn impacts the local economy.”
“The biggest cost component of running a high street gaming centre is labour: wage costs have now jumped by circa 40 percent on pre-COVID levels all of which has to be absorbed by the business. Social responsibility is paramount and we will not compromise on every one of our venues having professional staff that are trained in player protection.”
“Lowering the tax burden would deliver new jobs, stimulate investment and drive economic growth.”
Cost crisis
Sascha Blodau said… “The biggest cost component of running a high street gaming centre is labour: wage costs have now jumped by circa 40 percent on pre-COVID levels all of which has to be absorbed by the business. Social responsibility is paramount and we will not compromise on every one of our venues having professional staff that are trained in player protection……
Originally published on Coinslot on April 6, 2026. Republished with permission.