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EAG Chairman Nick Harding has entered the debate regarding the consequences of a rise in MGD describing a potential increase in the Autumn Budget as a “A short-sighted tax grab that will damage viable businesses, cost jobs and ultimately reduce the very revenues it seeks to raise”

Drawing on his experience gained from a four-decade career working in Britain's gaming and entertainment sector Harding has written to his constituency MP Labour’s Chris Curtis in addition to national media channels.

In his communication setting out the circumstances the industry finds itself in he argued: “This is a sector that employs over 100,000 people and pays c£4bn in tax each year. It relies almost entirely on revenue from gaming machines to underpin other forms of entertainment such as horse racing, live table games in casinos, bingo games amusements and so on.”

Addressing the arguments being put forward by former Prime Minister Gordon Brown to use further gambling taxes to fund the removal of the contentious two-child benefit cap he stated: “He (Gordon Brown) appears to view gaming businesses as some sort of golden goose that can be shaken vigorously until it lays a £3bn egg.

“In fairness, he has likely never examined a commercial profit-and-loss account for one of these businesses. As with any fixed-cost operation, every additional pound in tax comes straight off the bottom line. These are not high-margin enterprises; many barely break even, and an increase in Machine Games Duty would push them under.”

Pointing to the experience of other jurisdictions which have seen the gambling sector as a ‘cash cow’ he pointed out: “The Netherlands raised gaming-machine taxes last year, causing a quarter of operators to close and leaving the government €200 million worse off. Another increase is due this January, which industry analysts predict will close most of what remains and cut tax receipts even further.

“Surely fiscal policy should oil the wheels of commerce, not throw a spanner into them?  If the Chancellor decides to hit an already stressed industry which is not allowed to pass on any increase in costs to its customers, venues will close, staff will be laid off, and the Treasury will collect less tax, not more.”

Speaking with Coinslot Nick Harding said: “I think there’s every chance that the forthcoming Bacta Parliamentary Reception and Convention could be the most important for decades. The industry is at its best when it meets and shares insight and thinking. The Convention will be the first opportunity to regroup and reflect on exactly what Rachel Reeves will have announced the day before. Two months later EAG, which also includes the dedicated London Casino & Gaming Show will be the first opportunity for operators and games creators to come together and map out the future.”