The Budget delivered an unwelcome surprise for bricks and mortar casino operators in the UK, as tax on winnings went up.
The previous sliding scale of between 2.5 per cent and 40 per cent depending on their size has now been set at 15 per cent, with large casinos liable for 50 per cent.
It fired speculation that any company looking at operating the proposed regional casino may be deterred, and gave those looking to overturn the 17 new casino licences awarded with new gaming laws this year.
Penny Cobham, chairman of the British Casino Association, said: "This will threaten the regenerative benefits of new casinos anticipated by the Gambling Act and exposes the contradictions that have characterised the Government’s handling of the entire process."
Damian Aspinall, owner of Aspinalls casino in Mayfair, London, said: "It’s insane. They spend years deregulating the industry and then overtax it.”
Rank was ‘dismayed’ by the changes and estimated that the changes would wipe 20 per cent off the annual profits of its casinos, or £8m in real terms based on 2006 results.
“The changes, which have been imposed without prior indication or consultation with the industry, will have a negative effect on the profit performance of Rank’s casinos,” the company said.
