Speaking at the event, the ABB Chairman, Neil Goulden, said:
“This has been a decade of significant achievements – the introduction of Gross Profits Tax, the voluntary Codes of Practice on machines and age verification, and the Safe Bet Alliance, which saw robberies of betting shops in London fall by 60% and which we will be developing further in 2013.
We have also seen the dual licensing regime operating responsibly – no licences have been revoked.
In 2012, we are seeing 20 retail units closing a day, with big names like Woolworths, Clinton Cards, Comet all going. Yet, Britain's bookmakers are continuing to support our town centres and create jobs. We employ nearly 45,000 people and support a further 60,000 jobs in the wider economy. 25% of our staff are aged 18-24, at a time when 20% of young people are unemployed. Over 55% of our staff are women, making betting shops one of the most female-friendly industries in the retail sector. One in ten jobs in the leisure industry are in betting shops.
We contribute £3.2bn to the UK economy, paying one billion pounds a year in tax – that is the equivalent to the salaries of 28,600 teachers, 24,100 police officers or 35,000 nurses. In the last ten years, we have invested some £2billion in local economies.
But, a large number of betting shops operate on very low margins – almost 20% of the big 5 operators' shops make a profit of less than £13,300 a year. Large and small independent chains make an average operating profit of only £19,500 per year while single shop operators – of which there are 230 in total – make an average operating profit of only £4,800 a year.
These shops are at risk when a new taxation system begins – Machine Games Duty – on 1st February 2013.
This will cost the Licenced Betting Operators an extra £318million over the next five years. It will put shops under great pressure and we anticipate their profits to fall by 17% on average as a result. This would make some profitable businesses unprofitable overnight.
It goes against the Government's policy to encourage economic growth and job creation in the private sector.
Despite the challenges and threats facing it, our industry has and continues to create jobs and invest in our high streets at a time when many other retailers are closing down, we contribute a huge amount to our country's GDP and we pay substantial taxes every year. We will continue to bet on Britain's future.”
The ABB's 10th Anniversary Conference was held at London's Living Room in City Hall and was attended by over 100 ABB members.