Genting Casinos UK Highlights Risks From Proposed Machine Games Duty Increase

Genting Casinos UK has issued a direct warning about government plans that would double Machine Games Duty from 20% to 40% on land-based electronic gaming machines, a move the operator says would push 13 of its 32 casinos into unprofitability and could trigger closures along with associated job losses while also cutting Treasury income over time. Paul Willcock, the company's CEO, laid out these concerns in an opinion piece published by City AM, where he calculated the tax shift would add roughly £16 million each year to operating costs across the estate.

Details of the Proposed Tax Change

The adjustment targets electronic gaming machines in physical casinos, a category that forms a core revenue stream for many land-based operators. Under current rules the duty sits at 20%, yet the proposed doubling would apply uniformly and immediately alter the financial model for venues that rely heavily on these devices. Willcock pointed out that 13 locations, representing about 38% of Genting's total UK portfolio, would flip from profitable to loss-making positions once the higher rate takes effect, leaving management with difficult decisions around continued operation.

Those decisions could include outright closures in some cases, which would eliminate both the jobs tied directly to those sites and the wider economic activity they support in their local areas. The operator also flagged a secondary effect on government finances, noting that reduced activity and potential site shutdowns would shrink overall tax collections rather than boost them as intended.

CEO Comments and Industry Context

Willcock framed the issue around the cumulative pressure from multiple tax and regulatory changes facing the sector, arguing that the Machine Games Duty rise would compound existing cost pressures without a corresponding increase in player spending. The comments appear against a backdrop of wider industry discussions about tax policy, where several operators have raised similar points about sustainability for physical venues. Data from the company shows the £16 million annual cost increase would arrive on top of other operational expenses that have already risen in recent years.

Potential Outcomes for Operations and Employment

Closures would remove both direct employment at the venues and indirect roles in supply chains and local services. Observers note that each casino typically supports dozens of full-time positions plus part-time and seasonal work, so the loss of 13 sites would represent a measurable reduction in sector employment figures. The company has not specified exact job numbers at risk, yet the scale of the estate affected suggests hundreds of roles could be involved if closures proceed.

Revenue flowing to the Treasury would also decline because closed sites generate zero duty payments, while surviving venues might see lower machine usage if overall footfall drops. Willcock highlighted this dynamic in his piece, pointing out that the policy could produce the opposite fiscal result from the one projected by policymakers who assume static activity levels after the tax change.

Broader Sector Reactions

Other land-based operators have voiced parallel concerns about the same proposal, although Genting's public statement provides the most specific quantification of site-level impacts. Industry bodies continue to engage with government officials on the timing and scope of the duty adjustment, seeking either a phased rollout or adjustments that recognise differences in venue profitability. The comments from Willcock add concrete numbers to these conversations, showing how the change would affect one of the larger portfolios in the UK market.

Those who've tracked similar tax shifts in other jurisdictions note that abrupt duty increases sometimes lead to accelerated venue rationalisation rather than sustained higher collections. Genting's warning aligns with that pattern, framing the decision as one that could accelerate consolidation within the land-based casino sector.

Conclusion

The announcement from Genting Casinos UK supplies a clear case study of how the proposed Machine Games Duty increase would translate into operational consequences, with 13 specific sites identified as vulnerable and an annual cost impact quantified at £16 million. The operator's statements in the City AM piece also connect these local effects to wider questions about Treasury revenue stability and employment in the sector. As discussions continue, the figures presented offer a measurable benchmark for evaluating the policy's projected versus actual outcomes once implemented.