Gaming machines

Taxation update

Following a two-year reveiw and a number of industry consultations, HM Treasury announced in March this year to replace the current VAT levied on machine revenue and the Amusement Machine Licence Duty (AMLD) with a Gaming Machine Duty that will be levied at a rate of 20% of gaming machine gross profit from 1 February 2013. This change in the tax regime would have cost us an additional c. £13m based on 2011 performance.

Gaming machine regulation

DCMS has announced the reinstitution of the Triennial review of gaming machine stakes and prizes. Whilst we will be making representations about deregulatory measures such an increased ancillary entitlement in terms of machine numbers and linked jackpots, the main focus of the review is on stakes and prizes. We expect little movement for our sector here; although we will be supporting other sectors in their push for a rise in the B3 maximum prize from £500 to £1000 and a possible rise in the maximum stake from £2 to £3. There will be the inevitable call from the anti gambling lobby for a reduction in B2 stakes below £100, but we do not believe that there is any evidence to support such a move and Government are likely to maintain the status quo in a review which is more than 12 months down the line at least.

Registered Office: Greenside House, 50 Station Road, Wood Green, London N22 7TP.
Registration Number 4212563 England