duty tax

[eurovision1984]

in the budget yesterday there was a 20% duty tax on fruit machines.
what does this mean to us professional customers.
are we going to pay with lower percentage fruit machines.
as somebody has to foot the bill.
does this apply to uk based fruit machines? or is it for imput & export only.

[Mr McStreak]

In essence it spells bad news for the operator, but the lower jp scene might be rejuvenated as a result. Arcade owners will be hit hard, and landlords. I'm particularly dismayed about the plight of the amusement arcades, an intrinsic part of seaside towns, but arcade owners got greedy with random machines and have alienated their player base. Some Cashino arcades are going to be open 24 hours a day. What a ridiculous idea. They seem to think that it will generate new customers. All it will do is encourage existing customers to do their brains in the early hours, which means they won't be in during the day because they are skint.

The good news is that the bookies are going to get bent over with this new tax hitting the profit they gain from FOBT's.

Excellent.

[kong]

Its not going to happen till 2014, but if introduced as proposed yesterday it will have a major impact, affecting everything from pubs and arcades to bookies.

http://www.telegraph.co.uk/finance/budg ... -risk.html

[kong]

Another article which addresses the impact on pubs:

http://www.morningadvertiser.co.uk/Hot- ... -trade-14m

(also says Feb 2013, rather than 2014)

[Cf]

Another article which addresses the impact on pubs:

http://www.morningadvertiser.co.uk/Hot- ... -trade-14m

(also says Feb 2013, rather than 2014)

Article mentions they pay £900 per year. It fails to mention that they pay VAT on top.

I'll accept that maybe very very busy pubs/chains might be paying a bit more, but then they'll be making lots more in the first place.

But quieter local pubs will benefit from this imo. No need to pay £1k up front anymore.

[Noels Beard]

Yes. Despite my lefty politics....this is definitely a positive measure being introduced.

[aaamusements.co.uk]

Not going to directly affect me, but I see this overall as a bad thing for the industry and players in the long term.
It's good that it's going to replace individual machine AMLD and VAT but it's bad that they have gone as high as 20%. Everyone was hoping for 15% with a maximum of 17%.
We will have to see what happens, it's a way off yet...

[Mr McStreak]

Over recent years the Government has been carefully nurturing a steady increase in the amount of gambling that goes on, their relaxation of gaming laws has allowed this to happen. However other laws have harmed the pub trade, and Amusement Arcades have been struggling for the last couple of years.

It seems rather short-sighted then that the Government should hammer the ever-dwindling arcade owners with a 20% duty tax, as it will harm some to the extent of closure. They should be encouraging a regeneration, the more arcades in business the better for them, more premises to tax. Online gambling and FOBT's have done serious damage to what was once a thriving industry, the Government should hit them hardest.

[mouse75]

I honestly believe this is the best news players have had for years....
For a long time number of machines has been in decline - with pub after pub lowering their number. Logical really - Mr Landlord has one machine taking £4k profit of which current duty is a flat rate sum. If he has two machines and combined take is £5k profit - the cost of a second license is prohibitive. However - under new structure one machine grossing £4k - his cut £3200, two machines grossing £5k - his cut now £4000....
If all other costs remain the same (and this is down to the leisure companies) it will far benefit Mr Landlord to return to the good old days of 2, 3 or a room full of machines.
With a much higher demand.... companies might have to site older machines - surely good news for players in this current dog eat dog climate.