British gambling hall sector pushes back against “extraordinary” government stance
Bacta has expressed its disappointment at the government’s characterisation of the sector as “dodgy”.
UK.- Bacta, the trade body representing Britain’s gaming centre and amusement arcade sector, has hit back at recent government rhetoric. Writing on the organisation’s website, Director of Communications Allaster Gair warns of a “dangerous idea taking hold in British politics” arguing that the government has been portraying parts of the industry as “dodgy” and using taxation and regulation as a punishment.
“That principle should concern every business sector, not just gambling,” Gair argues. “The Prime Minister’s recent description of parts of our sector as “dodgy” was not merely disappointing. It was an extraordinary way to characterise legitimate businesses which are licensed, closely regulated, inspected by local authorities and required to meet extensive social responsibility obligations”. He poses the question of which lawful business will be judged socially unacceptable next.
Andy Burnham has only been prime minister since July 20, but has already highlighted plans to remove the “aim to permit” principle from the Gambling Act 2005, potentially giving local authorities more power to reject new gambling premises even when an operator satisfies licensing objectives. There have also been hints at a reduction in business rate relief for gaming venues and reports that Chancellor John Healey is considering a rise in Machine Gaming Duty for the Autumn Budget.
A “false account”
Bacta argues that the announcements have been accompanied by an “exaggerated” claim that betting shops and amusement arcades are “rapidly spreading” across Britain’s high streets, a suggestion that’s contradicted by the evidence.
Gambling Commission figures show that the number of licensed gambling premises has been falling for years, Gair notes. The number of adult gaming centres has declined by around 12 per cent since 2015, while the wider land-based gambling sector has also contracted significantly. This is a story of a regulated high street sector operating from fewer venues and under mounting financial pressure, rather than a story of uncontrolled proliferation.
“Rather than minor rhetorical flourishes, these statements form the justification for a potentially significant change in licensing policy,” Gair argues. “If that justification is based on a false account of what is happening on Britain’s high streets, the proposals themselves must be subjected to far greater scrutiny.
“Policy cannot be credible when the premise on which it is based is demonstrably wrong. Nor should responsible, licensed businesses be portrayed as a growing social menace simply because that description makes for a more convenient press release.”
It’s Gair’s view that the developments point to something more troubling than a legitimate debate about regulation, warning that they suggest that “businesses which have complied with every rule imposed upon them may nevertheless be taxed, restricted and ultimately regulated out of existence because politicians disapprove of the activity itself”.
“A government has every right to regulate an industry and tax commercial activity,” he argues. “But those decisions should be based on evidence, proportionality and economic reality. Taxation and regulation should not become instruments of moral judgement, used to squeeze lawful businesses out of existence because ministers or campaigners dislike the choices made by their customers”.
Sector responsibility
Defending the sector’s responsibility measures, he notes that Bacta’s members operate under strict licences, with local authority oversight and age controls. Licensed arcades do not serve alcohol and provide supervised, face-to-face environments with trained staff able to identify vulnerability, interact with customers and offer support, he says. They operate under the three licensing objectives established by the Gambling Act, including protecting children and vulnerable people from harm or exploitation.
“Bacta members have also continued to strengthen protections beyond the statutory baseline, including introducing new player prompt controls, enhancing customer interactions, improving player messaging and working to provide greater consistency across self-exclusion arrangements,” Gair adds.
“Those are not the actions of a “dodgy” industry. They are the actions of responsible businesses that understand their obligations and are prepared to keep improving”.
He noted that unlike some other sectors, many gaming businesses cannot shift overseas or respond to tax rises by redesigning their offering and hiking prices as machine stakes and prizes are set by law.
“Eventually, the numbers stop working. At that point, the result is fewer staff, less investment, vacant premises, weakened supply chains and ultimately closed businesses. Treasury receipts fall with them,” Gair argues.
