Genting Casinos UK Highlights Risks from Proposed Duty Changes on Gaming Machines

Genting Casinos UK has issued a direct warning that government plans to double the Machine Games Duty rate from 20% to 40% on land-based electronic gaming machines would place 13 of its 32 casinos into unprofitable territory; this shift represents roughly 38% of the company's UK estate and places around 850 jobs at immediate risk while adding an estimated £16 million to annual operating costs.

The proposal sits under active consideration ahead of the October 28 Budget, and it arrives after the earlier decision to double Remote Gaming Duty from 21% to 40% with effect from April 2026; observers note that the land-based measure would apply specifically to electronic machines inside physical venues rather than online platforms.

Scale of the Proposed Tax Adjustment

Current Machine Games Duty stands at 20% on gross gaming yield from land-based electronic machines, yet the new rate of 40% would match the revised Remote Gaming Duty level and create a uniform higher burden across both sectors; Genting Casinos UK calculates that the extra 20 percentage points would translate directly into the £16 million cost increase cited in its assessment.

Thirteen venues fall below the viability threshold once the higher rate takes effect, according to the company's internal modelling, while the remaining 19 sites would continue operating yet face reduced margins that limit future capital expenditure on refurbishment or expansion.

Employment and Local Economy Effects

The 850 positions identified as vulnerable span roles across the affected casinos, including dealers, hospitality staff, security personnel and management teams; these jobs support families in multiple regions where the venues operate as significant local employers.

Closure of the 13 sites would also remove footfall that currently sustains nearby businesses such as hotels, restaurants and late-night venues, thereby shrinking activity in the night-time economy that depends on casino visitors; the company points out that reduced tax revenue from these supporting enterprises would partially offset any short-term gain from the higher duty rate itself.

CEO Paul Willcock's Op-Ed Arguments

Paul Willcock, CEO of Genting Casinos UK, presented the case in a City AM opinion piece that higher taxation would discourage fresh investment in the land-based sector and ultimately shrink the overall tax base once venues close; he noted that operators facing sustained losses have little choice but to rationalise their portfolios.

The op-ed further states that teh combined effect of the Remote Gaming Duty increase already scheduled for April 2026 and the proposed Machine Games Duty rise would place land-based operators at a structural disadvantage compared with online competitors that can adjust pricing and product mix more rapidly.

Timeline and Policy Context

The October 28 Budget remains the key decision point where the Machine Games Duty adjustment could be confirmed or modified; industry participants continue to submit evidence to Treasury officials while the Remote Gaming Duty change moves forward on its fixed April 2026 timetable.

Those monitoring the process observe that any final rate decision will affect licensing, compliance costs and long-term planning for all land-based casino groups operating electronic gaming machines in the UK.

Conclusion

Genting Casinos UK's assessment provides a concrete illustration of how a proposed duty increase from 20% to 40% would affect one major operator's estate, with 13 venues, 850 jobs and £16 million in extra annual costs now under discussion ahead of the October 28 Budget; the company's statements also connect these figures to wider local economic activity and future investment decisions across the sector.