The Gambling Business Group convened on Wednesday to assess the Budget Statement and to prepare its initial response. During the process Coinslot was able to pose a few questions to CEO Peter Hannibal, focusing on the key takes from John Healey’s first Autumn Budget at the despatch box.
Coinslot: MGD up to and by 25pc – will it be a tax that creates a negative impact with job losses and business closures?
Peter Hannibal: You’ve phrased the question fairly accurately: it may be a 5 percent rise in the rate of MGD, but it’s 25 percent extra money to be paid in tax by every high street business that operates Category B machines – from AGCs, bingo halls through to members clubs.
And the additional tax needed to be paid will come from the P&L of all affected businesses.
Some will be able to stomach it, others won’t. What is certain is that some licenced gambling premises will close and a number of jobs will be lost.
Time will show how many premises and jobs are going to be affected by this clumsy cash grab by the Government. My guess is that the net result (for HMT) including all of the lost taxes in CT, NI etc will be something around neutral.
For all bingo clubs, members clubs and family businesses, there will be nothing neutral in a 4,5 or 6-figure hit on their income.
Coinslot: What will the 25 percent extra tax do to more vulnerable operations such as members clubs and bingo clubs?
Peter Hannibal:: Those unfortunately operating close to the margin will have to take negative action to protect the viability of their businesses if they are to survive. That’s a call the Treasury alone has made despite the powerful arguments every sector has been making.
We can’t speak for individual businesses but there are a limited number of options open to them including changing from Cat B machines to a lower taxed product, or reducing RTP – which is not recommended particularly as it may only provide short term relief.
The last drastic resort for them will be closure.
The MGD consultation appears to be designed to help clubs and pubs and others with supplier-owned machines operated under profit-share arrangements.
Whatever the calculation, the outcome will still be the same.
Coinslot: Would you agree that the Chancellor continued the now official alienation of AGCs in government policy notably in the removal of arcades from any business rates relief?
Peter Hannibal:: What I find offensive and unfair is the pairing of AGCs with unlicenced and unregulated vape shops. The two business types are in no way comparable.
It just shows how ignorant this Government is on the matter and how little it understands the weight of double regulation the industry works within under both Gambling Commission and local authority rules.
Coinslot: During his speech, Healey twice referenced that he was placing the cost of the high street revival on AGCs and betting shops, and yet we have planning legislation on the table to drive both of the them off the high street. Would you say that was sound budgetary policy?
Peter Hannibal:: I’m not sure I agree with the first recollection.
In fairness, the AGC sector in particular is already leading the charge on high street revival investing in re-opening shuttered shops, employing local people and local traders and paying Business Rates
AGCs and Betting Shops are legitimate businesses who look after their customers better than most.
They are also social hubs for local communities where people feel safe. It would be interesting to know when Mr Healey was last in an AGC or Betting Shop.
Coinslot: In other areas, we had a NMW rise, no change to NI levels – where’s the incentive for industry to employ new starters?
Peter Hannibal:: This Government is not interested in new starters or job creation, particularly not for land-based businesses.
The leader of the opposition stated it very clearly, people are better off on benefits than they are in work under this government.
And simple arithmetic will tell you: if you take up to 5 per cent out of P&L for the Gambling Levy, 15 percent extra to be paid in NIE, and now add 25 percent extra on MGD – and all of that new cost coming in little more than one year, there is nothing left for investment in people or the high street?
Originally published on Coinslot on November 2, 2026. Republished with permission.