Government plans to change taxation of games machines will cost the industry £85 million

10th February 2010, 7:44am

Government plans to change the taxation of popular quiz and games machines will cost the industry £85 million, put many manufacturers out of business and turn more people towards gambling on fruit machines, the pub sector warned today.

Other threats to the industry are that it will result in fewer people playing SWP machines for entertainment and more people playing fruit machines to gamble, SWP machines are manufactured in Britain and the scale of the tax bill will put many out of business, it will place hard-pressed pubs – closing at the rate of 39 a week – under further pressure, and jobs will be lost in manufacturing and pubs.

Her Majesty's Revenue and Customs (HMRC) are seeking to reclassify Skills with Prizes (SWP) machines as gambling machines, making them liable for gaming machine tax.

The industry argues that SWP machines, which have been on the market for many years, have always been recognised as distinct and different from gambling machines such as fruit machines.

Gambling machines, where chance is the deciding factor on whether a player wins a cash payout, have always been covered by a tax called Amusement Machine Licence Duty (AMLD).  Given SWP machines have existed for many years without being classified as gambling machines, the industry is questioning the legal and rational basis for such a change now.

Brigid Simmonds, chief executive of the BBPA, said: "The perverse result of this tax change will be to switch more people onto gambling as quiz machines are switched off across Britain.  That cannot be a sensible or sustainable public policy outcome for Government. 

"It must make more sense for Government to encourage those people who enjoy playing machines to have a bit of fun with their friends with games that are about skill and entertainment, rather than turn to gambling.  At the moment there is an incentive for pubs and people to play these machines.  This proposed tax change will remove that at a stroke."

Related Articles:

• 01 Oct 2010 - Pubs warned to check gaming machines

Click here to submit a comment!

Cal

13 February 2010 at 8:18am

The two quiz machines in my pub barely make £2500 between them in a year, we really just have them to attract students etc. I have never seen anyone lose or win more than a few quid from the things. I have certainly never seen anyone batter the machine in frustration after blowing their week's wages as happens regularly with the bandit. What's the point?

Have your say!

To comment on this article, simply enter your name and email and send us your views. Please note that your comment will appear publicly below this article once it has been processed. For enquiries please email info@eatoutmagazine.co.uk.