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Ahead of the government’s Autumn Budget in October, Entain CEO Stella David cautioned that doubling the current MGD rate to 40% could result in widespread closures of betting shops and significant job losses, while potentially reducing tax revenues for the government.
A potential MGD rise was first reported in the The Financial Times, as Chancellor John Healey is allegedly looking to raise the tax, on the recommendation of the Social Market Foundation, which proposed the increase in a recent report.
Prime Minister Andy Burnham had already announced the government’s intention to scrap “aim to permit” for betting shops as well as insisting that AGCs will now need planning permission to function.
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Spectrum conducted follow-up interviews with these employees who had “provided derogatory information relating to Evolution’s business practices”.
It said all interviewees had cooperated fully and some of them had “virtually little or no familiarity with the allegations contained in the report, as their job responsibilities fall outside the scope of these matters”.
Kugler told Spectrum “it was never his intention to provide incriminating information”. He said he had felt duped by Black Cube, and noted the person he had met with had disappeared after the report was released. He believed they had used a fake identity.
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Given that women account for nearly 60% of gaming customers in the US, Klebanow argues that Japan’s IRs should instead offer environments where this demographic feels “safe and comfortable”. The key lesson from pachinko, he concludes, is therefore “not to create gaming environments that mimic them”.
Ultimately Leckert remains positive on Japan’s IR opportunity. “Stringent regulation really supports a strong industry,” she says. “I don’t see those being at odds with one another, because it’s been done very successfully elsewhere.”
Japan’s ability to lure back the world’s biggest casino developers will hinge on the regulatory framework the government unveils later this year, says Klebanow.
