Genting Casinos UK Warns of Closures if Machine Games Duty Rises to 40 Percent

Genting Casinos UK has issued a direct warning that a proposed increase in Machine Games Duty from 20 percent to 40 percent would push 13 of its 32 UK casinos into unprofitability and could trigger closures across roughly 38 percent of its estate. The company outlined these figures in a submission tied to ongoing government consultations on land-based gambling taxation, noting that the higher rate would add approximately 16 million pounds in annual costs while shrinking the overall tax base if venues shut down.

Details of the Proposed Tax Change and Company Response

Paul Willcock, CEO of Genting UK, presented the case in a City AM comment piece where he stated that the duty rise would make continued operation of those 13 sites impossible under current economics. The argument centers on the simple equation that closed casinos generate no tax revenue at all, summarized in the headline message that operators cannot pay duty on venues that no longer exist. This position follows the earlier doubling of Remote Gaming Duty applied to online operators and forms part of wider industry feedback on how land-based taxation adjustments might affect physical gambling locations.

Company data shows the 13 affected casinos represent a significant portion of Genting's UK portfolio, and the projected cost increase would arrive on top of existing operational expenses including staffing, licensing, and property overhead. Observers note that the shift from 20 percent to 40 percent would more than double the tax burden specifically on machine gaming activity, which constitutes a core revenue stream for many land-based sites.

Potential Consequences for Operations and Treasury Receipts

According to the figures released by Genting Casinos UK, the additional 16 million pounds in yearly costs would erode margins at the identified locations to the point where continued trading becomes unsustainable. The company has not released a timeline for any closure decisions, yet the warning indicates that management would evaluate each site individually once the duty rate is confirmed. Industry records from previous tax adjustments demonstrate that operators have responded to similar pressures by consolidating estates or exiting certain markets entirely.

Those who have tracked taxation changes in the gambling sector point out that the Remote Gaming Duty increase already altered the competitive landscape between online and land-based platforms. The current proposal on Machine Games Duty extends that pressure directly to physical venues, where machine play accounts for a substantial share of activity. Genting's analysis concludes that the higher rate would reduce total Treasury receipts because fewer taxable machines would remain in operation after closures.

Context Within Broader Industry Taxation Discussions

The warning arrives while government departments continue to review land-based gambling tax structures following the Remote Gaming Duty adjustment. Previous industry submissions have highlighted risks of job losses and reduced local economic contributions when tax rates rise beyond certain thresholds, although Genting's latest statement focuses narrowly on its own estate and the direct arithmetic of duty versus profitability. Data supplied by the company indicates that the 13 sites at risk employ staff and serve communities across multiple regions, yet no specific employment totals were attached to the current announcement.

City AM published the CEO's comment as part of ongoing coverage of fiscal policy affecting the gambling sector. The piece emphasized that the headline principle remains unchanged regardless of venue size or location: taxation applied to closed businesses yields zero return. Genting Casinos UK operates 32 sites in total, and the 38 percent figure reflects the proportion that would cross into loss-making territory under the proposed 40 percent rate.

Conclusion

The statement from Genting Casinos UK supplies concrete numbers on the scale of impact should Machine Games Duty move from 20 percent to 40 percent, including the 16 million pound annual cost increase and the potential loss of 13 venues. The company has framed its position around the reality that closed casinos contribute nothing to Treasury revenue, a point reinforced by the earlier Remote Gaming Duty change for online operators. Further government decisions on the duty rate will determine whether those sites remain open or whether the tax base contracts as described in the warning.