Andy Burnham, the Mayor of Manchester, has put the future of BGO at risk with a proposal to increase gambling taxes. Managers of two major BGO companies, "Rank Group" and "BGO", have warned that this move could lead to the closure of popular venues and the loss of thousands of jobs.
Increase in gambling machine taxes
Reports indicate that the Prime Minister and the Chancellor are considering doubling the tax on gambling machines to 40% in next month's budget. This move is part of their efforts to tackle betting shops and adult gambling centers.
Dominic Mansour, CEO of "BGO", stated: "If BGO clubs are not protected from these reforms, the future of BGO in the UK will be at risk." He announced that such a tax increase could lead to the closure of many venues.
Risk of job losses
Richard Harris, CEO of "Rank Group", which manages 41 BGO venues and 47 Grosvenor casinos, stated that the increase in gambling machine tax from 20% to 40% would cost his company £35 million. He added that this increase could make one-quarter to one-third of the venues unviable.
Harris also warned that this situation could lead to the loss of up to 25% of the 6,500-strong workforce of "Rank" in the UK, which means 1,625 jobs. He emphasized that many of these venues are located in the "Red Wall" constituencies in northern England.
Social and cultural impact
BGO managers further pointed to the social impacts of these changes. Mansour said: "BGO clubs are places where people from different cultures and ages can spend time together. These venues are an important part of the social life of communities, and their closure could have significant negative consequences."
In response to these concerns, a spokesperson for the Treasury stated: "The Chancellor is fully focused on his priorities, and tax decisions should be announced at financial events." It seems that the BGO industry is on the brink of a major transformation, one that could have profound and far-reaching effects on society.
