Gambling

Supplementary written evidence submitted by the Association of British Bookmakers (GA 108)

Machine Games Duty (MGD)

Whilst I know that your formal inquiry into gambling has come to an end and you are probably now considering the possible findings to a report I wanted to bring to your attention recent developments which are particularly pertinent to the future of the betting industry.

As we outlined in our written evidence to the committee we have an on-going concern as to the impact of high regulation and high taxation on our sector.

As you will no doubt be aware the Treasury announced a new rate of Machine Gaming Duty in this year's budget. Despite assurances made during your Committee's Inquiry into the Gambling Act that the new rate would be fiscally neutral for the industry, the rate that was introduced was 20%. This is significantly higher than the rate we had calculated as being fiscally neutral for the industry and has an extra bottom line cost on our business sector of over £300 million over the next five years.

At the same time, the Treasury also announced a consultation on Place of Consumption Tax for remote gambling. The rate that has been proposed, at 15%, will also have a very significant impact on the betting industry.

We remain very concerned that at a time when the UK Government wishes to encourage growth and job creation, the betting industry faces an increase in taxation, without any sign of deregulation or innovation. The increased taxation will have an impact on our sector's ability to grow and develop and will threaten job creation.

I am happy to provide further information should you wish but I wanted to bring these issues to your attention so that I hope you and the committee can take them into account in your wider deliberations.

June 2012

Prepared 5th July 2012