The cost of Britain’s first super casino has risen by £6.25 million (US$10.9 million) since Chancellor Gordon Brown introduced his budget yesterday. At £5000 (US$8,700) annual tax on each of the permitted 1,250 unlimited stake and prize machines, the operator will dig a little deeper into his pocket. The Chancellor is notoriously suspicious of the gambling industry because of concerns over social problems. However, the tax rate imposed will not be untenable for a world class operation.

Bookmakers who have been raking in the profits from the Fixed Odds Betting Terminals (FOBTs) on their premises will also face more taxes. From 1 August each machine will pay Amusement Machine Licence Duty of £1,965 (US$3,426) in addition to the present VAT. This was not unforeseen although at the high end of the expected increase. The operators of other types of gaming machines in casinos, bingos and amusement arcades will pay duties ranging from £735 (US$1,282 ) to £2,500 (US$4,359 ) annually.

The additional operating costs may cause a setback to some bids for a super casino. Places such as Yarmouth, already in competition in its own region with Southend, may decide that the extra tax revenue is more than could be met from player traffic in that area. Projects for locations easily accessible from major metropolitan areas would be less affected. Whatever the outcome of yesterday’s budget, there will be others before Britain’s first super casino opens its doors. Politics and policies, as well as gambling laws, are liable to change. (E-03.23.06)

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