Update: The BGC welcomed confirmation on March 25 that its members will qualify for the business rates holiday scheme amid the ongoing pandemic. The council had requested inclusion in the scheme on March 20 following the government’s mandatory shutdown of all casinos, betting shops, and bingo clubs in the UK.
No help for gambling companies
The Betting and Gaming Council (BGC) has written a letter to the Chancellor of the Exchequer, Rishi Sunak, after companies in the gambling sector were excluded from business rate relief introduced to help ease the impact of the coronavirus pandemic.
The chancellor announced rate relief measures to help businesses that are disproportionally impacted by the pandemic on March 18. All businesses in the hospitality, leisure, and retail sectors have been given a business rate exemption for the next twelve months.
classified retail betting shops as financial services businesses as opposed to leisure businesses
The Business Rates Local Authority Guidance detailed exactly which businesses would be eligible for rate relief. It has specifically excluded all “casinos and gambling clubs.” It has also classified retail betting shops as financial services businesses as opposed to leisure businesses. Financial services companies are not eligible for this relief.
Letter sent to the Chancellor
In its letter to the chancellor, the BGC said: “Any suggestion that casinos are not part of the leisure industry is frankly bizarre when they provide entertainment, food and drink to millions of people every year.” The letter also stated that gambling businesses have been “deliberately left out to dry.”
The letter spoke about the tens of thousands of people whose jobs are at risk. With the lack of this special business relief, it will likely lead to further employment losses. There is also the risk that casinos will become insolvent and countless betting shops will have to close on a permanent basis.
Alternative measures
The letter calls for the chancellor to introduce other types of measures that could help the gambling sector.
The BGC did acknowledge that it is a difficult time for lawmakers who are trying to deal with this situation. However, there would be a sharp increase in the number of unlicensed operators targeting UK residents if the government does not step in. It claims that the physical presence of gambling companies could be wiped out in the UK.
Struggles across the board
Gambling companies in the UK and abroad have been hit hard by the impact of the coronavirus. Retail operations have been shut down for the most part and sports betting revenues have tumbled due to events being canceled.
This has led to the likes of William Hill and Flutter Entertainment issuing profit warnings. Numerous companies have also canceled shareholder dividends for the foreseeable future.
