Peter Hannibal, chief executive of the Gambling Business Group, sees no hope for the recovery let alone growth on Britain’s high streets this decade if the government goes ahead with its proposed MGD tax rise in the Budget.
“An increase in MGD will make absolutely no impact to the £30 billion hole in the Treasury accounts. But it will have an absolutely devastating impact on high street economies all over the country,” he told Coinslot.
“For many businesses in the hospitality sector, gaming machines play a key contributory role to the finances. They add to income rather than adding to operational costs. And for pubs, arcades, bingo clubs, betting shops and members/social clubs – their machine income is a survival lifeline.
For the bigger operators, machines contribute to local employment, high street investment, a town’s social and entertainment offering and the local economy.
They are vital in the small to medium sized towns both inland and on the coast. And the government knows only too well how fragile the economy is in these constituencies.
We have long called for joined up thinking in government when it comes to tax and legislatory policies. Unfortunately, what we’ve been getting so far in this budgetary discourse is a scattergun approach of – tax what we can without putting context to these arbitrary proposals.
And for the gaming and gambling sector, in particular, this context – and joined up thinking – is absolutely vital because for too many businesses their machines income is the difference between staying open and closing their doors – for good!
The high street operators are facing not just the same intense pressures of rising costs through business rates, NIC hikes and ever increasing regulation, but the industry has also taken on board a 1-4 percent charge this year for its annual contribution to the Gambling Levy.
This is on top of all business taxes and operating costs. To the small family business running a seaside operation, that could amount to tens of thousands of pounds, up to the bigger high street operators where it will hit hundreds of thousands. Even the larger operators are not going to keep their loss making venues open just so that they can continue to pay taxes and the levy.
This dynamic modelling is missing from Treasury thinking over MGD tax rates. For so many of these businesses there is very little left in the pot and there is only so much you can pay in tax, rates, regulation and levies before you are forced to face the prospect of either running at a loss or, throwing the proverbial towel in and not paying these costs any longer.
And the pub, bingo, arcade, betting, night time, seaside and social club sectors have all been telling the Treasury this constantly and consistently for the last few months.
For many of them, a rise in MGD is going to trigger the beginning of the end.
Originally published on Coinslot on November 24, 2025. Republished with permission.