As the UK government continues to move towards a new regulation regime for the gambling industry, leading figures from the US casino market are calling for lower tax rates.
American casino operators are demanding that the Treasury introduce a tax rate of no more than 20 per cent on gaming profits before they will invest large sums in the gaming industry, which is to be deregulated next year.
Las Vegas operators such as Harrah's and MGM Mirage will not build the large resort casinos, envisaged as a key part of the Government's deregulation plans, unless gaming duty is cut substantially.
Talks over a new gaming duty regime to suit US investors will be of central importance as the rules governing the UK gaming business are hammered out by the industry and MPs. Lloyd Nathan, the managing director of MGM Mirage Development, Europe, said: "The current tax rate would be prohibitive to the type of large scale development that the government is looking towards."
The deregulation plans set out in a recent draft Bill envisage unlimited slot machines in large casinos and an end to the "permitted area" restrictions currently imposed on casino developers. Casinos will also be able to offer other types of gambling such as fixed odds betting and bingo.
Large casinos pay 40 per cent tax at the moment, although smaller, provincial casinos pay lower tax rates depending on their profitability. The more profit a casino makes in the UK, the higher the tax rate it pays.
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