Adult Gaming Centres (AGCs) are set to feel the wrath of a new political agenda in the UK, as Andy Burnham has confirmed his support for the hospitality sector through a 20% cut in business rates, which will be funded by higher taxes on AGCs.
Just four days into his premiership, Burnham is already embarking on sweeping change, and he emphasised his belief that ‘can’t see all businesses as the same’.
Announcing the policy, he specifically picked out AGCs as causing social harm, grouping them in with vape shops as a specific element of the high street that offers very little to the community.
It remains unclear exactly what this tax will look like; however, as Manchester Mayor, Burnham lent his weight to campaigns led by local council members to halt the number of new AGCs opening and grant councils greater powers over planning permission.
Burnham could well be about to toe the line of the Social Market Foundation (SMF), which proposed a doubling of the Machine Games Duty on Category B machines from 20% to 40%.
This would come despite loud warnings from the industry of the consequences of such a move. Bacta underpinned that the impact on the economy would be significant, describing the proposed hike as a plan to close venues rather than a plan to raise funds for the economy.
Grainne Hurst, Chief Executive of the Betting and Gaming Council, has also laid out the impact on the economy, stating the job losses as a result of tax hikes would be significant and high streets would be weakened as a result.
Furthermore, Bacta underpinned that the impact wouldn’t be limited to high street betting, but also in seaside towns, social clubs, piers, family entertainment centres, bingo premises, and throughout the supply chain of manufacturers, machine suppliers and small businesses that depend on this sector.
The body issued a scathing indictment of the proposal of the SMF, describing it as fundamentally misunderstanding how land-based venues operate.
It also claimed: “The SMF appears to have tried to separate Category B and Category C machines to avoid opposition from pubs and hospitality. That may be politically convenient, but it is economically incoherent. You cannot carve up the land-based sector on a spreadsheet and pretend there will be no wider consequences.”
It underpins that slapping a higher tax rate on machine betting comes with wider consequences than just limiting the prevalence of AGCs on the high street – that Burnham and much of the government have been so vehement in villainising.
If the government is to pursue further tax hikes on the industry without widespread consequences far beyond just impacting AGCs, it needs to be nuanced and delicate in how it shifts the framework for machine gaming.
The plans for tax rises have been praised by Labour MP Dawn Butler, but she has also indicated that the government should go further in handicapping the industry with further regulation.
She stated she is ‘pleased Andy Burnham recognises the campaign against adult gaming centres, which can cause real social harm.’
Also adding that she is ‘campaigning to scrap Aim to Permit to give local authorities the power to stop the spread of betting shops, casinos and AGCs on our high streets.’
Butler has led campaigns to change the Aim to Permit rules, as she has looked to increase the control of councils in terms of where venues can be opened in the high street.
During a House of Commons debate she previously stated: “It’s not right. I come with thousands of written complaints from my constituents who want action on the number of gambling venues. But it’s still not enough because of the Aim-to-Permit law.
“Let’s be clear, they don’t help high streets. They set up knowing other shops don’t want to be there, because these establishments entice people with free food and drink, teas and coffee. There is no point in having a coffee shop when it’s being given away for free next door.”
Supporters for change demand more control to reject licence applications and consider local debt in planning decisions. As part of his demands, Councillor Cuncliffe called for more weight to be placed on a cumulative impact assessment, as well as greater pressure put on applicants to demonstrate there is a need and demand for new venues.
It is unclear what the new tightening looks like for the gambling sector right now, but what is clear is that the Labour leader is opening a can of worms in terms of taking on the industry and policy may well not be limited to the taxation of machines.
