Osborne's FOBT tax 'puts jobs at risk'

In his Budget speech today, the Chancellor said because fixed odds betting terminals “have proliferated since gambling laws were liberalised almost a decade ago” he is raising the Machine Game Duty.

“These machines are highly lucrative, and therefore it’s right we now raise the duty on them to 25%,” he told MPs.

A spokesman for the ABBsaid threatens over 15,000 jobs and 3,000 betting shops across the country. The tax has already raised more than £50m since it came into effect last year.

“Increasing the rate to 25% as was announced today, so soon after it was first introduced, makes a bad policy much worse,” he said.

“This could the cost the industry an extra £75m.

“Thirty per cent of our shops, and many are small family run businesses, make less than £300 in profit a week. This knee jerk and ill-considered tax raid means their futures are now on the line.”

The spokesman said the tax hike “does absolutely nothing to address the concerns that have been raised, and will have absolutely no impact on levels of problem gambling in the UK – which remain low at 0.5%”.

He added: “The licensed bookmaking industry is the only sector in the UK that pays more in tax than it generates in profits. The Government’s desire to continue to soak the industry undermines our ability to continue to support horse and greyhound racing. It will cost jobs and reduce the investment we can make in the research, education and training that’s needed to tackle problem gambling.”