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Machines - Select Committee proposals on stakes and prizes would help pubs, says BBPA


The British Beer & Pub Association (BBPA) has welcomed two key recommendations from the Culture, Media and Sport Select Committee examining the operation of the Gambling Act 2005. The Committee’s wide-ranging report has welcomed the reinstatement of the Triennial Review system for gaming machines, and has proposed that these reviews should be designed to maintain the value in real terms of stakes and prizes.

The BBPA also welcomed the Committee’s view that the rate of the new Machine Games Duty (MGD) should be maintained at a level that encourages investment in the machine industry and does not stifle growth. In particular the BBPA supports the recommendation that that the Machine Games Duty rate should always be revenue neutral to the gaming machine sector, and the fact the Committee has urged the Chancellor to ensure this is achieved by making use of industry analysis of the impact of MGD, including compliance costs.

BBPA Chief Executive Brigid Simmonds comments:

“There is no doubt that the rate set by the Government in March did not take into account the costs of MGD implementation and was not revenue neutral to the sector overall. We need a tax level for machines that allows investment. The Committee’s proposal that the rate could be lowered, if the tax is found not to be revenue neutral to the industry, is a good one.”

“On the triennial review of stakes and prizes, the Committee suggests that this should be used to ensure that their real value is maintained. Fruit machines are a vital income stream for pubs, and regular stake and prize reviews ensure that these remain popular with customers. I hope the Government takes up these ideas.”

Notes to editors:

MGD will replace Amusement Machine Licence Duty and VAT from 1st February 2013.

The British Beer & Pub Association is the UK’s leading organisation representing the brewing and pub sector. Its members account for 96 per cent of the beer brewed in the UK and own half of Britain’s 51,000 pubs.


Pubs, Gaming

For further information contact:

Neil Williams
Head of Media
Tel: 020 7627 9156 / 07974 249 779

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