Genting Casinos UK Highlights Risks to Operations from Proposed Duty Hike on Gaming Machines
Bianca Schwarz · Sep 25, 2026
Genting Casinos UK Highlights Risks to Operations from Proposed Duty Hike on Gaming Machines
UK government proposals to double Machine Games Duty from 20% to 40% have drawn direct warnings from Genting Casinos UK, which operates 32 venues across the country. The company states that such an increase would add roughly £16 million annually to its operating costs and place 13 of those casinos at risk of unprofitability or closure. These details emerged in a City AM comment piece authored by CEO Paul Willcock, who noted that the higher rate would ultimately shrink the tax base and reduce overall Treasury revenue.
Details of the Proposed Change
The Machine Games Duty applies to gaming machines located in casinos and other licensed premises. Current rules set the rate at 20%, yet the government has advanced plans to raise it to 40% as part of broader budget measures. Industry observers note that implementation discussions continue amid ongoing parliamentary debates, with potential effects expected to surface by September 2026 if the measure advances unchanged. Genting Casinos UK calculated the £16 million annual impact by modeling revenue and cost structures at each of its sites, identifying 13 locations where margins would turn negative under the doubled rate.
CEO Statement and Company Position
Paul Willcock presented the figures in his City AM piece, explaining that the duty increase would affect profitability across a significant portion of the portfolio. He pointed out that higher taxation on machines, which form a core revenue stream for many casinos, would force difficult decisions on staffing, hours, and in some cases site viability. The company emphasized that its analysis focused solely on the direct cost of the duty hike without incorporating secondary effects such as reduced customer spending or supplier adjustments.
Broader Industry Response
The Betting and Gaming Council’s Casino Operators Group issued parallel warnings about potential widespread closures and job losses if the duty doubles. Group members, which include multiple major operators, have shared data showing that machine revenue accounts for a substantial share of total income at many venues. Those operators argue that the proposed rate would exceed the point at which several sites can maintain positive cash flow, leading to reduced employment and fewer taxable locations over time. Genting’s specific projection of 13 affected casinos aligns with the group’s general assessment that smaller and mid-sized venues face the greatest pressure.
Revenue and Employment Context
UK casinos currently contribute to Treasury receipts through a combination of Machine Games Duty, corporation tax, and other levies. Genting Casinos UK reported that the additional £16 million would represent a direct transfer from operating budgets that currently support wages, maintenance, and capital improvements. Industry data compiled by the Betting and Gaming Council indicates that casino employment nationwide exceeds several thousand full-time roles, many tied to venues that rely on machine play to cover fixed costs. A contraction in the number of profitable sites would therefore reduce both direct tax collections and the economic activity generated by those locations.
Tax Base Considerations
Willcock’s comment piece highlighted the risk that higher rates could reduce the overall tax base rather than expand it. Under the current 20% rate, all 32 Genting casinos remain operational and contribute to duty payments. At 40%, the 13 marginal sites would either close or operate at a loss, removing their contribution entirely. Similar patterns have appeared in past duty adjustments where operators consolidated or exited markets once thresholds were crossed. The company’s modeling shows that the net revenue to the Treasury could decline once closures are factored in, because fewer active sites would remain to collect duty from.
Timeline and Next Steps
Budget deliberations continue through the current parliamentary session, with final decisions on Machine Games Duty rates expected to influence operator planning for the 2026 fiscal year. Genting Casinos UK has stated that it will continue to engage with policymakers to present its site-level data and employment figures. The Betting and Gaming Council’s Casino Operators Group has scheduled further submissions that aggregate impacts across multiple operators. Observers note that any final rate change will take effect after the September 2026 implementation window referenced in recent government timelines.
Conclusion
Genting Casinos UK’s warning centers on concrete figures: 13 of 32 sites at risk, £16 million in added annual costs, and a potential reduction in Treasury receipts if closures occur. CEO Paul Willcock’s City AM piece and the Casino Operators Group statements supply the primary evidence for these projections. The debate over the Machine Games Duty rate remains active as lawmakers weigh revenue targets against operational realities reported by the sector.