Bacta’s latest Pulse Survey warns that a significant rise in Machine Games Duty would have far-reaching consequences, with members predicting business closures, job losses and a sharp decline in investment. The findings underline growing concern that higher taxation could accelerate the contraction of Britain’s regulated land-based gaming sector.
The devastating impact of a potential increase in Machine Games Duty has been put into sharp relief by the findings of the latest Pulse survey of Bacta members.
Conducted prior to the confirmation of Andy Burnham as Prime Minister the survey findings paint a bleak picture characterised by business closures, job losses and a squeeze on capital investment – all causing distress throughout the supply chain and in local economies.
Asked about the impact that a ‘significant’ increase in MGD would have on their business all respondents said it would be negative with 90 percent quoting a ‘severe negative impact’: the remaining 10 percent qualified the impact as being ‘moderately negative.’
Asked to identify the biggest challenge should MGD be increased by the new Prime Minister the single biggest response was Remaining Profitable (67 percent) followed by Maintaining Staff Levels (23 percent) and Investing in New Machines and Refurbishment programmes (10 percent).
Drilling down into the impact on investment the overwhelming majority (87 percent) said an increase in MGD would make a downturn in investment Very Likely, with 3 percent describing it as likely and the remaining 10 percent undecided.
In tangible terms the most likely consequences of a shift in MGD is the closure of some AGCS (43 percent of respondents), a downturn in profitability (30 per cent) and fewer jobs (27 percent).
Reflecting on the findings Bacta President Joseph Cullis said: “The latest Pulse Survey of members supports our position that hiking taxes on gaming machines will only serve to damage high streets, seaside towns, working men’s clubs, pubs, bingo clubs, manufacturers and the wider supply chain. If the licensed, regulated sector retracts it will be the illegal unregulated sector that benefits.
“Furthermore, many seaside piers and amusement arcades rely on income from gaming areas to stay viable year-round. That income helps keep staff employed and It helps maintain attractions and buildings that are part of Britain’s coastal heritage.
“Our industry already carries a heavy and highly specific tax burden. Machine Games Duty is a major cost on land-based businesses. On top of that, operators face business rates, irrecoverable VAT, the statutory levy, rising wage costs, higher National Insurance, energy bills, licence fees and the growing cost of compliance.
“An increase in MGD would serve to tax the industry into terminal decline when what’s actually needed is a fair, responsible and progressive environment in which our industry can contribute to the economic growth agenda.
“No wonder the most emphatic response to this Bacta Pulse Survey was the 100 percent who said that Westminster Policymakers did not understand our sector.”
You just don’t understand us
Bacta Pulse Survey said… “No wonder the most emphatic response to this Bacta Pulse Survey was the 100 percent who said that Westminster Policymakers did not understand our sector…
Originally published on Coinslot on August 3, 2026. Republished with permission.