Coastal amusement centers at risk of tax investigation for gaming revenue

In the quaint coastal town of Clacton-on-Sea, the iconic Clacton-on-Sea Pier is under threat. Elliot Ball, its proprietor, has issued an urgent plea to Chancellor Rachel Reeves, appealing for the sector to be spared from further tax hikes.

The leisure industry lobby group Bacta, headed by Joseph Cullis, shares Ball's concerns. Cullis warns that increased taxes could have a devastating impact on coastal towns, potentially threatening the viability of businesses like Clacton-on-Sea Pier.

The primary concern revolves around a gambling tax that could unfairly level the playing field. If coastal arcades and amusement parks were taxed similarly to larger operators, such as online gambling giants, it would not provide a fair playing field, according to Ball.

The amusement arcade sector, a vital part of many coastal towns, fears being included in the same tax bracket as these digital powerhouses. The specific demands and effects on coastal pier arcade operators are not yet clear, but the uncertainty looms large.

Meanwhile, fears regarding the extension of such a tax system to traditional amusement arcades could result in increased financial burdens, potentially threatening their operations. The organization demanding a tax increase for regulating the gambling sector is not explicitly named, but political figures have expressed skepticism about the need for tax hikes.

The proposed tax plan targets online firms and includes a doubling in tax on revenues from in-person slot machines, expected to raise an extra £900 million. However, spending on slot machines is not a major source of income for Clacton-on-Sea Pier, but it is crucial to the business as it appeals to all ages.

Many businesses in coastal towns depend on the arcade sector, and increased taxes could negatively impact them. John O'Reilly, boss of the Rank Group, warns that a sector-specific levy could cause the market to move offshore into the unlicensed market, which pays no tax.

As the Chancellor considers increasing taxes on the betting industry to fund the scrapping of the two-child benefit cap, the Treasury has declined to comment on Budget tax speculation. The future of Britain's seaside arcades hangs in the balance, with the potential for them to become unsustainable due to these new gambling taxes.

Cullis suggests that higher taxes could lead to job losses and a rise in unemployment in coastal towns. As the Chancellor makes her decision, the hope is that the unique charm and character of coastal arcades will not be lost to the tide of increased taxes.