Electrocoin’s founder John Stergides has stated the government is “destroying the industry” with punitive tax and wage rises, warning that further increases could push “the most regulated businesses” towards failure. And he had a word of advice to the new PM based on long experience.
Electrocoin founder and industry stalwart John Stergides has taken aim at the government’s financial policy, warning that the proposed increase to MGD would directly threaten one of the country’s most regulated sectors, as well as pubs and social clubs.
Speaking to Coinslot, Stergides claimed the threat posed by a 40 percent machines duty is now the “greatest” facing the industry, coming as it does after a raft of similar economic changes that have piled on costs for operators.
“There are many problems facing the sector,” said Stergides. “Business rates, the increase in minimum wages, a less-than-ambivalent press (self-limiting players entrapment instances, etc.) and above all MGD.”
“The MGD threat is greatest due to the influence from outside the industry, which will damage and destroy investment in businesses, will affect seaside locations and employment, deliver less tax to the Treasury, and – most importantly – it will close more pubs, arcades, and social clubs.”
Stating the government is “destroying the industry,” Stergides said: “Already minimum wage, rates, and energy costs have nearly doubled since the Labour government took over, and the public has less money to spend on leisure activities.”
“Andy Burnham is on record as complaining of too many vape shops and gambling locations, but his complaints about gambling are based on the influence of people outside the industry, aiming for personal moral gains and glory, and to have the excuse why they contribute funds to Labour.”
“The PM and his government, alongside local authorities, should be helping the most regulated businesses to keep going, introducing new initiatives to increase facilities for entertainment so manufacturers invest money and effort to create new games and restart manufacturing again in the UK, instead of doing the opposite.”
Hearing voices
For John Stergides, though, the crux of the problem remains the voices, and which ones actually reach the PM.
The Electrocoin founder is one of the most pioneering voices in the industry – his messaging dating back to the 1970s – and yet he feels strongly that the industry’s voice is being drowned out by the vociferous anti-gambling campaigners.
“I have long argued that the government and the regulator place unequal weight to the opinions of the lobbying groups over that of the industry.And I believe that has driven direction away from innovation, growth and employment for our towns and cities,” he told Coinslot.
The Stergides family have been in the industry for seven decades running high street operations and manufacturing pioneering games and products worldwide during that time.
And they have industry colleagues all around the country with the same familial roots and deep ties to their towns from the showmen to family businesses such as JNC, Harry Levy, the Rudd Group, Reflex and neighbours UDC, all putting everything they have into their businesses and communities.
They don’t just have skin in the game – they have their entire body and soul in it.
That, Stergides feels, cannot be said for most of the anti-gambling campaigning groups. “I don’t feel Electrocoin’s voice is being listened to by the government,” said Stergides. “Family businesses like ours with an international footprint don’t seem to matter to the government anymore.”
In fairness, he has a point. When campaigners talk to newspapers like the Guardian, the government pricks up its ears.It’s not so easy for the Stergides family business.
“Our businesses, our employees, our manufacturing, our taxes, our business rates, our business development for the UK around the world – that all delivers a return to the British economy. That cannot be said for the political activists campaigning against the industry, nor the researchers funded by the Levy. I’d like us to be listened to.”
And if that ever happened, Stergides wanted to convey some of his industry experience that dates back to the latter years of the Beatles.
“I’m certain that the Prime Minister will probably not wish to take advice from people like myself. But I and a lot of my contemporaries have extensive experience to share, and I would like to offer one note of hope to Mr Burnham. It’s always important to remember that those you consider your enemies are also the people and businesses you are elected to represent. And they have the same passion as you for the growth and prosperity of the country and all its people.
“There is so much more to gain from working with our industry to re-build our high streets, increase investment in our local economies, and expand trade with the rest of the world, than there is by destroying it. It’s a lesson from my generation to yours. Growth simply won’t come from destruction. Working alongside one another will.”
Originally published on Coinslot on October 19, 2026. Republished with permission.