On Wednesday, prominent figures from the UK's casino industry warned that a potential doubling of the machine games duty (MGD), along with broader economic challenges, could hinder investment and threaten jobs as the sector strives for modernization.
During a panel discussion at the Hippodrome Casino in London, executives from key operators, including Rank Group, Genting Casinos, and Hippodrome, joined representatives from the Night Time Industries Association (NTIA) and consultancy Regulus Partners to express their concerns.
Investment remains critical. Richard Harris, CEO of Rank Group, raised alarms about the compounding effects of increased taxes, stricter regulations, and rising operational costs. "In my four and a half years, we’ve closed four of our venues," he lamented, citing the tough financial landscape characterized by high costs, escalating taxes, and regulatory pressures that have markedly affected profitability.
Harris indicated that the looming tax increases have already begun to influence investment choices. Paul Willcock, COO of Genting Casinos, echoed this sentiment, stating that the prospect of MGD increases is “keeping us all awake.”
The suggestion to raise the MGD from 20% to 40% was introduced by the Social Market Foundation a few months ago and might be included in the government's forthcoming autumn budget. The casino sector has vehemently opposed this proposal, arguing that it could severely impact retail operations.
In a previous statement, Betfred owner Fred Done specified that such a tax increase would lead to the closure of 495 shops within 12 months, risking 2,575 jobs and a significant loss of approximately £67 million in tax revenue for the Exchequer.
“If we can get some relaxation or at least certainty on that, then investment will flow,” Willcock informed attendees. He reaffirmed Genting’s readiness to invest in the UK, contingent on a stable fiscal and regulatory environment. “Genting has invested $5 billion on the Las Vegas Strip in the last five years. Spent $5 billion in New York and $3 billion in Singapore,” he highlighted. “It is itching to invest in the United Kingdom.”
Simon Thomas, executive chairman of the Hippodrome, emphasized the need for confidence within the industry, insisting that operators require reassurance about the stability of “playing conditions” and the regulatory framework over typical investment periods of three to seven years.
Harris backed this viewpoint, summarizing that “profit is the source of future investment,” highlighting that consistent conditions are essential for operators to effectively generate and reinvest profits.
The panel expressed optimism regarding the Gambling Commission’s 2025 land-based modernization reforms, which allow for an increase in the number of slot machines per casino from 20 to up to 80 and relax certain ancillary betting rules. Harris revealed that Rank Group had expanded its machine estate by 65%, growing from 1,400 to 2,250 machines, investing £15 million in a single venue due to these reforms.
Despite this progress, the panel acknowledged the need for time to fully implement these changes, alongside stable tax policies to ensure the sector’s growth. Dan Waugh, a partner at Regulus Partners, pointed out the necessity of assessing whether the reforms have enhanced customer experiences and broadened appeal: “Are these better places to go to as a result of the regulated reforms? And also, is the experience more widely attractive?”
The casino industry has outlined a planned investment pipeline totaling approximately £200 million over the coming years. Michael Kill, CEO of the NTIA, stressed the potential economic benefits of sustained casino investment, which could bolster high streets, the night-time economy, job creation, and local supply chains.
According to a report by the NTIA, 58% of respondents, which included casino patrons and local residents, noted that the casino was the primary reason for visiting an area, and 55% stated they would likely not have visited without the casino’s presence.
Moreover, the NTIA warned that if the MGD rises, up to 3,800 jobs could be lost nationally. A survey of 23 operators indicated that an overwhelming 95.7% would reduce staffing levels, and 91.3% would cut back on venue investments, with 60.9% fearing they may have to close venues altogether.
Willcock underscored the importance of the casino industry as a significant employer and vital community player, stating that Genting employs around 3,500 people in the UK and highlighted robust training protocols, noting, “There’s significant training, six weeks training before anybody can go anywhere near a casino table.”
Both Kill and Waugh pointed out the broader societal role of casinos, including their impact on perceptions of safety in town centers during late-night hours and their function as venues for community meetings. Kill mentioned an often-overlooked aspect: “People coming after midnight actually felt safe because of the service levels, because of the engagement, the lighting, etc.”
The panelists collectively called on the government to permit its 2025 reforms to take effect without imposing immediate tax increases. Kill asked for a chance to ensure these reforms can be effectively implemented and recognition of casinos as instrumental to extended hospitality offerings that support 24-hour economies.
Willcock and Harris stressed that a clear and stable fiscal framework would encourage further large-scale investments. Waugh cautioned against overly aggressive policy decisions driven by “public health dogma,” advocating instead for balanced regulations that protect consumers while fostering sustainable business growth.
A recent analysis from Regulus estimated that the horse racing industry may lose approximately a third of its annual revenue—around £92 million—if the duty increase proceeds.
