Bacta Survey: MGD Rise Triggers Closures, Job Losses

UK.- August 05, 2026 www.zonadeazar.com The devastating impact of a potential increase in Machine Games Duty (MGD) has been put underlined by the findings of a membership survey conducted by Bacta, the UK’s land-based trade association.

Conducted prior to the confirmation of Andy Burnham as UK Prime Minister the survey findings paint a bleak picture characterised by business closures, job losses and a decline in capital investment – all of which will cause distress throughout the industry supply chain and in local economies.

Asked about the impact that a ‘significant’ increase in MGD would have on their business all respondents said it would be negative with 90 percent quoting a ‘severe negative impact’: the remaining 10 percent qualified the impact as being ‘moderately negative.’

Asked to identify the biggest challenge should MGD be increased by the new Prime Minister the single biggest response was Remaining Profitable (67 percent) followed by Maintaining Staff Levels (23 percent) and Investing in New Machines and Refurbishment programmes (10 percent).

The overwhelming majority (87 percent) said an increase in MGD would make a downturn in investment Very Likely.

The most likely consequences of a shift in MGD is the closure of some Adult Gaming Centres (43 percent of respondents), a downturn in profitability (30 per cent) and fewer jobs (27 percent).

Reflecting on the findings Bacta President Joseph Cullis said: “The latest survey of members supports our position that raising taxes on gaming machines will only serve to damage high streets, seaside towns, members clubs, pubs, bingo clubs, machine manufacturers and the wider supply chain. If the licensed, regulated sector retracts it will be the illegal unregulated sector that benefits.

“Furthermore, many seaside piers and amusement arcades rely on income from gaming areas to stay viable year-round. That income helps keep staff employed and It helps maintain attractions and buildings that are part of Britain’s coastal heritage.

“Our industry already carries a heavy and highly specific tax burden. An increase in MGD would serve to tax the industry into terminal decline when what’s needed is a fair, responsible and progressive environment in which our industry can contribute to the Government’s economic growth agenda.”

Edited by @pererarte   www.zonadeazar.com