UK casino operators have warned the government against doubling machine games duty (MGD) from 20% to 40%, arguing the move would hit retail venues and stall investment that is already being held back by speculation. The warning came at a panel discussion at the Hippodrome Casino in London featuring executives from Rank Group, Genting Casinos and the Hippodrome, alongside the Night Time Industries Association (NTIA) and Regulus Partners. The Social Market Foundation proposed the doubling, and it is now being linked to the autumn budget.
Rank Group chief executive Richard Harris pointed to the combined pressure of tax, regulation and operating costs. The company has closed four venues in four and a half years as profit and cash flow fell. Profit funds future investment, he said. Genting Casinos chief operating officer Paul Willcock called the prospect of a higher MGD a sleepless night for the whole sector. Without clarity, large projects do not start. Genting says it is ready to invest in Britain under stable rules: it has already put $5 billion into Las Vegas over five years, $5 billion into New York and $3 billion into Singapore. Hippodrome chairman Simon Thomas said operators need a three-to-seven-year horizon with clear terms.
The market took the Gambling Commission's 2025 reforms positively. The cap on slot machines in casinos rose from 20 to 80, and rules on additional stakes were eased. Rank Group lifted its machine estate by around 65%, from 1,400 to 2,250, and put £15 million into one venue. The effect takes time. The sector has set out an investment plan of around £200 million for the coming years. NTIA chief executive Michael Kill noted the sector's contribution to the evening economy and to employment. In an NTIA survey, 58% of respondents named a casino as the main reason for visiting an area, and 55% would not have come without one.
The cost of a higher tax has been counted. Of 23 operators surveyed, 95.7% would cut staff if MGD rose, 91.3% would reduce investment in venues, and 60.9% might close a site. Direct and indirect losses are put at around 3,800 jobs nationwide. Betfred owner Fred Done said in September he would close 495 shops over a year, with the loss of 2,575 jobs and £67 million in tax receipts. For racing, Regulus Partners estimates losses at about a third of annual revenue, or £92 million. Genting employs around 3,500 people in Britain and trains dealers over six weeks. Panel participants urged the government to let the 2025 reforms settle and to leave the tax unchanged. Dan Waugh warned against reducing policy to a 'public health dogma'.
