Labour certainly isn’t working as far as the industry is concerned. The latest Bacta Pulse Survey of members reveals overwhelming anxiety over a potential Machine Games Duty hike, prompting widespread fears of venue closures and job losses. Asked who they would vote for if a general election was called tomorrow just 4 percent would support the government as Reform UK once again tops the unofficial poll.
Confidence in the future of the industry and support for the Labour Government have both tanked – according to the latest set of responses to the Pulse Survey of Bacta members.
Conducted over the period 7th – 14th August the attitudinal snap shot of Bacta members reveals a sector that’s hugely disillusioned with the Government, massively concerned by the prospect of a potential increase in MGD and whose confidence in the future of the industry is shot.
Asked if they were more or less confident about the future, 96 percent of respondents confirmed they were less optimistic than they were prior to the July 2024 general election with 4 percent stating they were uncertain.
Confidence or more precisely a lack of confidence in the future of the industry is directly aligned with attitudes towards MGD. Every respondent expressed concern at the impact a hike in the rate of MGD would have on their business with 96 percent expressing extreme concern and 4 percent stating they were ‘somewhat’ concerned.
In an overwhelming rejection of the government and in the event of Prime Minister Andy Burnham calling a snap General Election as many Bacta members would spoil their ballot as vote for the Labour Party (both 4 percent).
Despite suffering a drop in the National Polls Reform UK is the most likely party to be supported by Bacta members (44 percent) followed by Kemi Badenoch’s Conservative Party (40 percent). Plaid Cymru and the Liberal Democrats failed to register a single vote with the remaining 8 percent of Bacta members ticking the box named Others.
As well as being presented with a range of potential outcomes arising from an increase in MGD comprising venue closures (31 percent of respondents), reduction in investment (23 percent), reduced staffing (15 percent), customer price increases (8 percent) and a reduction in profitability (8 percent), respondents were also asked to provide the single biggest argument that the Government should take on board before increasing MGD.
The collected comments overwhelmingly expressed deep concern about the negative consequences of an MGD increase particularly the impact on Adult Gaming Centres (AGCs), and seaside arcades.
Respondents warned that a higher rate of MGD would make it unsustainable for venues to operate, especially those already facing tight margins some as low as 6 percent. Comments highlighted that an increase in costs would force closures, particularly impacting SMEs and independents leading to a loss of traditional seaside amusements and other community-based hubs such as membership clubs.
A recurring theme raised by respondents was the risk of significant job losses, especially among young adults for whom the industry often provides first-time employment. Business closures would not only increase unemployment but as a consequence also raise the welfare burden on the state.
Stakeholders argued that raising MGD could paradoxically reduce the overall tax yield citing international examples such as the Netherlands, where higher gaming taxes led to venue closures and a net decrease in tax receipts. One respondent cited the Laffer Curve as evidence that the industry is rapidly approaching a taxation tipping point. Invented by economist Arthur Laffer, the economic theory argues that tax rates that are too high discourage people from working and investing.
There is also concern that an increase in MGD disproportionately affects highly regulated businesses and could drive consumers to unregulated black-market alternatives, undermining consumer protection and the huge advances that have been made in the delivery of socially responsible gambling entertainment. Respondents also cited non-reclaimable VAT, rising business rates, and other operational costs, arguing that further tax increases are unsustainable.
In the open response section of the Bacta Pulse survey stakeholders urged the government to recognise that increasing MGD risks business closures, job losses, reduced tax revenue, and a shift to less regulated gambling environments, ultimately undermining both the Labour Government’s economic and its broader social objectives.
Burnham Pulse is fading
Bacta Pulse said… “In an overwhelming rejection of the government and in the event of Prime Minister Andy Burnham calling a snap General Election as many Bacta members would spoil their ballot as vote for the Labour Party (both 4 percent)…
Originally published on Coinslot on August 24, 2026. Republished with permission.