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Euroslot-JAN09-PG27-28:Layout 1 04/01/2010 11:43 Page 27 UK MARKET REPORT
destroying suppliers to pubs and clubs and the proposals, and should instead focus on working
manufacturing sector. with industry to improve the existing AMLD
In response to British trade body BACTA’s system to deliver efficiencies for Government and
The new UK Gambling Act 2005 came into force lobbying there was an increase in Category C and business.
on 1 September 2007. The introduction of the D stakes and prizes this summer as follows: GPT would place additional administrative
Gambling Act 2005 has resulted in serious For Category C machines – the maximum stake burdens on an industry where operators tend to
unintended economic and social consequences and prize limits increased to £1 and £70 renew all their AMLD in one transaction.
with the traditional business industry now in respectively from 50p stake £35 cash Separating machine takings into gaming and non-
terminal decline with weekly increases in closures For Category D crane machines – the maximum gaming profits will prove a major inconvenience. It
and redundancies. stake and prize values increased to £1 and £50 would also be difficult, if not impossible, to
Because the Gambling Act has reduced gaming respectively from 30p stake £8 non cash introduce a single rate without significantly
machine stakes and overall machine numbers in For Category D mixed cash prize/non-cash prize penalising some operators or sectors.
traditional softer adult gaming venues (such as machines – maximum stakes remainedunchanged, Introducing more than one rate brings more
adult only areas in seaside arcades, bingo halls and but the prize value of ‘penny falls’ or ‘coin administrative and operating complications,
adult gaming centres), customers have migrated to pushers’ increased to £15 (of which a maximum of leading to the conclusion that GPT is an unviable
high stake gaming machines in other venues. £8 can be cash) from 10p stake £5 cash means of taxation.
Every week brings more business closures and These increases already appear to have provided Source BACTA
redundancies, not just at the seaside but a major boost to gaming machine manufacturers
and suppliers. The increase in stakes and prizes The Gambling Commission Report 2009:
Number of machines has encouraged operators to invest in new “It has been a productive year for the Gambling
equipment and thereby helped to alleviate the Commission. The Gambling Act 2005
Adult Gaming Centres 58464
downturn and ensure that there is a future for the has now been in effect for 18 months. Following
Family Entertainment Centres 67860
traditional seaside amusement sector, which is a the successful completion of the transition from
Pubs 67860
stalwart of the British tourism industry. Gaming Board to Commission, including an
Clubs 16965
extensive exercise to licence the gambling industry
Bingo 17226
Current Taxation Rates as at 22 April 2009: under the new Act, we have been focused this year
Licensed Betting Offices 30276
From 4pm on, 22 April 2009 all rates of on delivering a proportionate, risk-based approach
Others 2349
amusement machine licence duty (AMLD) to regulation. We are now organised to ensure that
Total 261000
increased and from 1 June 2009 some of the front line activity and intelligence inform and are
Gaming duty bands increased in line with the new informed by risk- based regulatory policy and
stake and prize levels. decision making.
Operationg licenses granted (non remote)
In the 2009 budget, the Government announced
that it would consult on moving the taxation of
Bingo 221
gaming machines onto a gross profits tax basis.
Betting 801
BACTA is opposed to the introduction of a Gross
AGC 601
Profit Tax (GPT) to replace the current
FEC 336
Amusement Machine Licence Duty (AMLD) and
Gaming Machine Full Technical 55
VAT systems. It believes that HM Treasury should
Gaming Machine Technical Supplier 146
abandon any plan to consult formally on these
Gaming Machine Technical Software 55
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