UK — Andy Burnham has endorsed a proposal to increase taxes on adult gaming centres and called for stricter regulations to prevent the exploitation of vulnerable people in the UK. He also backed a plan by Gordon Brown to fund an end to the two-child benefit cap through increased gambling industry taxes.

Burnham condemned reports of adult gaming centres exploiting vulnerable people, stating that operators were "targeting some of the most vulnerable in our communities." He called for tougher regulations to curb the proliferation of these centres. Last year, the Gambling Commission reported that the adult gaming centre sector achieved record takings.

The Social Market Foundation released polling data indicating that 43% of the public would support a Labour administration raising taxes on adult gaming centres. The foundation's proposal suggests that doubling the machine games duty from 20% to 40% could increase tax revenue from Category B slot machines by an estimated £275 million to £458 million. Category B slot machines currently contribute £600 million in tax. This proposal would not affect lower-stakes Category C and D fruit machines found in pubs.

Bacta, a trade association, criticized the Social Market Foundation report as "fantasy economics and grossly irresponsible." Bacta predicted that the proposed tax increase would lead to reduced tax revenue and job losses. Another industry group, the Betting and Gaming Council, also stated that any increase in machine games duty would result in job losses. Merkur was fined last year after being found to have exploited a gambling addict diagnosed with terminal cancer.

Burnham supported calls to grant local authorities more power to prevent new adult gaming centres from opening. He was among 300 signatories to a letter addressed to Keir Starmer, advocating for the removal of the "aim to permit" rule. This rule, introduced by the 2005 Gambling Act, mandates licensing authorities to favor allowing new gambling venues to open. Burnham served as a junior minister in Tony Blair's government when the 2005 Gambling Act was enacted.

The UK government introduced new "gambling impact assessments" through the Devolution Act, which passed in April. These assessments enable councils to consider the number of existing gambling premises in an area when making licensing decisions.

Why It Matters

This discussion addresses concerns about the societal impact of adult gaming centres and the financial mechanisms to curb their expansion and fund social welfare programs. The proposals involve changes to the taxation and regulation of the gambling industry, which could impact both government revenue and the operational landscape for gaming businesses. Public support for increased taxation on adult gaming centres is noted, alongside opposition from industry groups who anticipate negative economic consequences.