Betting and Gaming Council calls on UK government not to abandon UK gambling firms
Trade body lobbies for UK government support for bookies employment costs following Covid-19 cancellations
The government must provide financial support amid the coronavirus crisis to address the “unprecedented challenge” faced by the UK gambling sector, according to Betting and Gaming Council CEO Michael Dugher.
The BGC has called for a range of measures including an immediate emergency assistance on employment costs for operators, as well as tax relief and additional time to pay betting and gaming duties.
In addition, Dugher called on the government to provide access to finance for struggling operators.
“This is a national emergency. The government’s public health response has to be matched in scale by emergency help for businesses and employees. The Treasury cannot let people in hospitality, leisure and entertainment hang out to dry,” Dugher said.
The calls come after the cancellation of the Randox Health Grand National, as well as the postponement of sporting fixtures in both the UK and internationally.
The Govt must act quickly if it is to avoid the impression that the leisure, entertainment and hospitality industries have been hung out to dry. Where is the urgent package of messages to help businesses and their employers?
— Michael Dugher (@MichaelDugher) March 16, 2020
The BGC claimed high street bookmakers could face a 60% decline in sports betting following the cancellations. The BGC has lobbied for the reduction of business rates during the crisis, with the government confirming it would do so within the recent budget.
However, the BGC insists the situation has “dramatically worsened” in the past few days, with increasing restrictions on the movement of people and the cancellation of key sporting events.
“Like all other parts of the hospitality, leisure and entertainment industries, the immediate priority for the future of our members in the casino, bingo and betting industry is the ability to pay staff,” Dugher said.
“Treasury in particular need to step up and understand that insurance simply doesn’t cover the impact of a pandemic,” Dugher added.
Operators including GVC, Flutter and William Hill have all said they expect triple-digit losses in EBITDA as a result of the disruption.
Dugher also took aim at the UK government’s decision to make “seismic changes” to the betting and gaming industry over the past year, namely the changes to increase in online gaming duty to 21% of GGR and changes to FOBT stake limits.
“Online businesses are not immune either, with sports betting playing a major source of revenue for many of our members. The racing industry will also be particularly hard hit and we are in discussions with them as to how we can support each other to keep our two industries operational,” the BGC said.
The trade body revealed it has consulted its members on the impact of the restrictions being put in place to help tackle the spread of Covid-19.
It also highlighted measures undertaken by the Spanish, French and Danish governments in providing temporary financial support for companies during the Europe-wide lockdown, lobbying for similar measures to be introduced in the UK.