Seaside amusement arcades face gambling tax raid

Britain’s seaside arcades fear they will be caught in a gambling tax trap that could make them ‘unsustainable’, it was claimed this weekend.

The warning comes as Chancellor Rachel Reeves weighs up whether to hit the betting industry with higher levies to fund scrapping the two-child benefit cap – an idea championed by former prime minister Gordon Brown.

But the amusement arcade sector, immortalised by Nessa’s Slots in the hit TV series Gavin And Stacey fears that it will be included in the same bracket as online gambling giants.

Elliot Ball, who took over Clacton-on-Sea Pier in 2009 with his brother Billy, is among those urging Reeves to spare a sector reeling from higher National Insurance and minimum wage costs from further hikes in her upcoming Budget. His top concern is that a gambling tax would ‘not be a fair playing field’ if coastal arcades and amusement parks are taxed in the same way as bigger operators.

Though spending on slot machines is not a ‘greatly lucrative’ part of the business, he said the 150-year-old Essex pier would be unsustainable without it as it appeals to all ages. He added: ‘In times of economic downturn, public crisis or war, the pier has always seen a great amount of footfall.

‘We’re confident people will come but we need to make sure that it’s sustainable for the long term.’

Pierless: Stacey and Nessa, right, at Nessa’s Slots in Gavin And Stacey

Echoing his fears, Joseph Cullis, head of leisure industry lobby group Bacta, warned more taxes risk a ‘devastating effect’ on coastal towns.

‘It’s very difficult,’ he said. ‘Margins in business are getting squeezed. The first thing that’s going to happen is people are going to lose their jobs if taxes go up. Then there is going to be a knock-on effect, a rise in unemployment.

‘For generations, people have come to the seaside to have fish and chips and visit arcades… This could all be in jeopardy if the Government decides to raise taxes – a lot of businesses feed off of us and it could have a negative impact on many coastal towns.’

Gambling giants have decried talk of a sector-specific levy. Casino operator Rank Group boss John O’Reilly insisted the sector was a huge contributor to the country’s coffers saying: ‘The reality is the market would quickly move offshore into the unlicensed market, which is paying no tax at all.’

Brown’s plans target online firms but they also include a doubling in tax on revenues from in-person slot machines that would raise an extra £900 million. The Treasury declined to comment on Budget tax speculation.