UK Treasury Proposal Targets Gaming Machine Duty Hike for Casinos

The UK Treasury has floated a plan to double the machine games duty rate from 20% to 40% in time for the October 28 Budget, and company modeling from Genting Casinos UK shows this shift would push 13 of its 32 venues into unprofitable territory or outright closure; the same figures flag more than 850 direct jobs plus roughly 50 support positions as vulnerable once the higher rate takes hold. Observers note that the duty applies to electronic gaming terminals inside casinos, so the immediate arithmetic lands hardest on operators who rely on those machines for a large slice of revenue.

Details of the Tax Adjustment and Genting's Internal Assessment

Genting's own calculations, shared through industry channels, indicate an annual cost increase of around £16 million if the rate moves to 40%, and those projections already factor in typical volume and player behavior patterns across the estate. Because the duty is calculated on gross gaming yield from machines, any venue where margins sit close to the line would see the extra 20 percentage points wipe out remaining profit after fixed costs such as rent, staffing, and utilities. Thirteen sites fall into that category according to the modeling, while the remaining 19 would continue but with sharply reduced returns that limit further capital expenditure.

CEO Paul Willcock's Position on Investment and Market Effects

In a City A.M. op-ed, Genting Casinos UK chief executive Paul Willcock laid out the downstream consequences: planned projects such as the £50 million redevelopment of the Trocadero site in London would face review or delay because the higher duty erodes the cash flow needed to service new debt or deliver promised returns to investors. Willcock also pointed out that widespread venue closures would shrink the overall tax take collected by the Treasury, since shuttered sites generate zero duty revenue and zero employment taxes, whereas continued operation at the current 20% rate sustains a steady if smaller contribution. The same statement highlighted the risk that displaced players could migrate toward unregulated online or offshore platforms that sit outside the current tax and licensing framework, reducing visibility and oversight for regulators.

Broader Operational Context for the Affected Venues

Each of the 32 Genting properties operates a mix of table games and electronic machines, yet the duty change singles out the machine segment, so venues with higher machine density stand to absorb the largest absolute increase. Company statements emphasize that the 13 at-risk sites are spread across different regions, which means job losses would not concentrate in one locality but would instead affect communities from major cities to smaller towns. Support roles tied to central functions such as compliance, marketing, and maintenance would also come under pressure once the estate shrinks, because fewer venues require fewer centralized resources.

Those who've reviewed the modeling note that Genting already operates under strict land-based licensing rules that cap machine numbers and stake limits per venue, so there is limited scope to offset the duty rise through volume increases or product changes. The result is a straightforward margin squeeze rather than an opportunity to rebalance the business mix.

Timeline and Next Steps Before the October 28 Budget

The proposal sits in the pre-Budget consultation phase, giving operators and trade bodies a window to submit data on employment, capital plans, and projected tax receipts under both the current and proposed rates. Genting has already placed its internal figures into that discussion, and other casino groups are expected to follow with their own venue-by-venue breakdowns before the final decision is locked in. Because the Budget date is fixed for October 28, the consultation period remains short, and any adjustments to the rate or to accompanying reliefs would need to be announced then to take effect in the new tax year.

Conclusion

The Treasury's proposed doubling of machine games duty therefore sits at the center of a narrow but measurable set of outcomes for Genting Casinos UK: 13 venues under threat, more than 850 jobs directly exposed, and a £50 million London redevelopment placed on hold pending clarity. Company modeling and the CEO's public comments frame the change as one that reduces rather than increases net revenue to the Exchequer while pushing activity toward less regulated channels. The October 28 Budget will determine whether the rate moves forward as drafted or whether modifications emerge from the ongoing consultation.