Un aumento della Machine Games Duty potrebbe danneggiare le città costiere nel Regno Unito?

The speculation around a potential hike in Machine Games Duty has raised a lot of backlash. BACTA, the gaming hall trade association in the UK, has suggested that raising the rates can potentially harm seaside towns, and it published a poll back in August that shows the public shares the same sentiment.

Machine Games Duty, or MGD, applies to several types of gambling machines, some of which are offered at seaside town arcades. And any changes to the status quo, in terms of levies, are raising cause for concern about the long-term sustainability of seaside arcades. Which, in turn, could hurt the revenue that the seaside towns make, and this economic damage can spread further to bars, cafes, pubs, and even hotels.

Roles of Seaside Arcades

Seaside towns boast a throng of amenities for travelling guests, they are hardly gambling destinations like Vegas, or have a prestigious portfolio of luxury casino resorts like Macau. Instead, these are local getaway spots with activities, bars, hotels, restaurants, and beaches for travellers to enjoy. Seaside arcades are an important part of the mix, an established part of the coastal tourism culture, and also provide revenue and jobs in towns where seasonal tourism is vital.

The importance of seaside arcades is particularly clear in towns such as Blackpool, Great Yarmouth, Brighton, Scarborough and Bournemouth, where these destinations combine arcades with piers, fairground rides, restaurants, bars, hotels and other attractions. Famous examples of arcades include:

• Coral Island (Blackpool)
• Palace of Fun (Brighton)
• The Dome (Brighton)
• Joyland (Great Yarmouth)

These offer a variety of games, including penny pushers, ticket redemption games, claw cranes, video game simulators, pinball, and even adult gaming areas with slots or higher stakes gambling terminals. Broken down, they cover low stakes entertainment for the whole family to try out, a few nostalgic games to soak up the atmosphere of the seaside towns, and also a handful of bona fide slots.

Their Importance in Seaside Town Economy

That wider role is what makes BACTA particularly concerned about the possible MGD increase. Its August YouGov survey found that 77% of respondents believe seaside arcade closures would have a negative impact on Britain’s seaside towns, while just 9% believed closures would have a positive impact. Around two-thirds also said arcades were important to seaside towns. Broken down, the survey of 2,186 adults voted that:

• 66% said arcades were important to seaside resorts
• 16% said they were among the most important attractions (alongside pubs, theme parks and museums)

BACTA President Joseph Cullis argued that arcades rely on gaming revenues to remain viable throughout the year, with this income helping sustain employment beyond the summer peak. He also warned that the consequences could spread to bars, cafes, pubs, restaurants, hotels and B&Bs.

“RNLI data estimates that approaching 50-million visits are made to the UK coastline over the entire summer season with VisitBritain calculating that domestic holidaymakers and day-trippers will generate up to £4.1 billion for the broader UK tourism and hospitality economy over this Bank Holiday weekend alone.”

Bacta President Joseph Cullis

This creates a very different picture from simply increasing a tax on gambling. If higher MGD makes an arcade less viable, the potential loss is not necessarily limited to the tax paid by that business. It could also mean fewer employees, less investment and fewer visitors spending money in the surrounding area. Cullis continued:

“The YouGov findings confirm that arcades are viewed as an intrinsic part of the Great British Seaside Holiday. A hike in Machine Games Duty will increase the tax burden on already struggling businesses. This would directly compromise the appeal of British seaside tourism, forcing arcades to either close permanently, cut operating hours, or pass costs on to holidaymakers. Consequently, a diminished, more expensive experience would reduce traditional multi-night breaks to single-day trips, and possibly drive families to holiday abroad.”

Bacta President Joseph Cullis

The seaside arcades, which are an important part of the economy, must try to keep their business consistent year-round, as it sustains the economy of the seaside towns outside of the main summer peaks.

BACTA Backlash Against MGD

BACTA has made its opposition to an increase particularly clear. In its statement, “You Cannot Tax or Regulate Lawful Industries Out of Existence Simply Because You Dislike Them,” the trade body argued that lawful businesses should not be subjected to levels of taxation and regulation that eventually make them unviable.

The association has also gathered evidence from its own members. A recent BACTA survey found that every respondent was concerned about a significant MGD increase, with 96% describing themselves as extremely concerned and 4% as somewhat concerned. Among the potential consequences identified were venue closures, reduced investment, staff cuts, higher prices and lower profitability.

For a sector that includes arcades, AGCs, machine suppliers and amusement businesses, BACTA argues that the effects could work their way through the entire supply chain.

October Budget MGD Potential Hike

The speculation comes ahead of the UK Autumn Budget, with reports suggesting the Treasury is examining ways to increase revenue from land-based gambling. The government needs to raise money or face cutting spending, and part of Burnham’s goal is to help bring relief to smaller businesses. He wanted to scrap the Aim To Permit decree in the 2005 Gambling Act, giving local councils more power to block new gambling venues from setting up shop on their premises. But this has also been called into question because it directly contradicts the National Scheme of Delegation. And, even in his own constituency, there was support for bookies and criticism for Burnham’s anti-gambling stance.

As for machine games duty, nothing has been confirmed so far. The current rates remain 5% for Type 1 machines, 20% for Type 2 and 25% for Type 3, while speculation has centred on potentially raising some higher stakes machine rates significantly, potentially up to 40% to match the iGaming duty rates from last year’s Autumn Budget. The argument from the land-based sector is therefore that the government needs to consider how much additional revenue a higher rate would actually generate once closures, reduced machine numbers and lower investment are taken into account.

MGD impacts a wide range of licensed premises, including casinos, Adult Gaming Centres, betting shops and clubs. HMRC sets the rate according to the cost of play and prize level rather than simply the type of venue.

1 Year On from Autumn Budget

Part of the industry’s concern is that gambling can be an easy target for policymakers looking for additional tax revenue. The recent tax changes to online gambling demonstrate how quickly rates can change when the government decides that an industry can contribute more. Remote Gaming Duty increased from 21% to 40% on 1 aprile 2026, while online betting is due to face a higher rate from aprile 2027.

Land-based gaming largely avoided those increases, leaving it facing a potentially different position from online gambling. The rates remained for all retail betting and gambling, as it did for horse race betting and the duties on landbased bingo were removed entirely. The possibility of now raising MGD suggests the Treasury could be looking to broaden its tax base further.

For operators, though, the concern is that a significant increase could arrive after several years of pressure on the retail gambling and amusement sectors, rather than at a time when businesses are particularly well placed to absorb it.

Future of UK Gambling Industry

For, as BACTA and many trade associations and insiders have pointed out, the retail gambling sector is not spreading as quickly as the online sector. In fact, it is facing increasing threats and major operators are slowly pulling out of retail gambling for digital verticals instead. Just look at the betting shops in the UK – Paddy Power, William Hill and Betfred have all restructured their businesses and closed high street betting shops. Casino-adjacent venues such as adult gaming centres and slot clubs have become a good alternative, but only because these are much smaller and don’t have the same staffing requirements. They aren’t, either, surging in the UK gambling scene.

And as for coastal arcades, BACTA argues that weakening arcades could damage an established part of Britain’s coastal tourism economy, while its own members are warning about closures, job losses and reduced investment.

The government may still decide that higher MGD is necessary to raise revenue. But as the October Budget approaches, it will have to consider whether squeezing more money from the land-based gambling sector is worth the potential cost to Britain’s arcades, high streets and seaside towns.