Subscribe

The Impact of the Budget on the Gambling Industry and Machines in Pubs

The good news is that no changes were made to gambling duties in the budget.

The bad news is that there is the increase in VAT.  This is a hammer blow to the industry due to the way in which VAT is paid and collected. Business In Sport & Leisure (BISL) made a statement announcing that the impact will be most likely in 3 ways:

1. A loss of around 2% on the machine margin as VAT is assumed to be part of the cash box revenue.  This will affect all machine income in gambling premises and any premises with gaming machines such as pubs.  
2. Increased purchasing costs where businesses have reduced rates of recoverable VAT.  
3. A potential loss from the impact of any slowdown in consumer spending.

The impact of this change will place more pressure on an industry already severely hit by the recession,  the outcome of which could see more small business’s in the sector who are already struggling, closing.

Jonathan Hyldon