Gambling: Bookies complain as tax levied on betting machines
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Britain's bookmakers took a blow when the Chancellor imposed licence fees on their betting machines, a move that will cost the industry tens of millions of pounds, and increased the tax on one-armed bandits at arcades and clubs.
From 1 August, bookies will have to pay an annual licence duty of £1,965 per machine on electronic fixed-odds betting terminals (FOBTs), on top of VAT. There are about 20,000 machines across the UK.
Karen Potts, a tax partner at Deloitte, said: "Bookmakers are getting their worst-case scenario. They've deferred the pain until 1 August, but it will be painful."
A spokesman for Ladbrokes, which has about 6,800 FOBTs, said: "The rate is slightly higher than expected but it's also coming later than expected." He said the company would be hit by £3m this year and £11m next. William Hill said the impact on its figures would be slightly higher as it has 7,500 machines.
Gordon Brown also set an annual duty of £5,000 on the new unlimited-stake and prize machines that will be allowed in Britain's one proposed supercasino.
Annual taxes also increased to between £735 and £2,500 per machine for arcades, bingo halls, casinos, clubs and pubs.
The increase on clubs' jackpot machines will hurt non-profit making sports clubs which are heavily reliant on the money. The tax rise also hits pubs hard whose income from fruit machines is already down.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments