UK Casinos Face Potential Closures as Government Considers Doubling Machine Games Duty
Ben Roth · Oct 1, 2026
UK Casinos Face Potential Closures as Government Considers Doubling Machine Games Duty
Genting Casinos UK has issued a direct warning about a government proposal that would double Machine Games Duty from 20% to 40% on gaming machines in land-based venues. The company states that this change would push many of its sites into unprofitability and force difficult operational decisions across its portfolio.
Details of the Proposed Tax Change
The Machine Games Duty applies specifically to gaming machines located in casinos, betting shops and other licensed premises throughout the United Kingdom. Under the current structure operators pay 20% on machine revenue, yet the new proposal would raise that rate to 40% and create an immediate increase in annual operating costs. Genting Casinos UK estimates this adjustment alone would add £16 million to its yearly expenses while simultaneously reducing the viability of multiple sites.
Genting Casinos UK's Specific Warnings
According to company analysis, 13 of its 32 UK venues would become unsustainable under the doubled rate. These locations currently support more than 850 jobs that would face direct risk if the venues close or scale back operations significantly. Genting has also pointed out that the higher tax burden could discourage planned capital investments, including a £50 million redevelopment of the Trocadero site in central London.
Potential Impact on Employment and Operations
Observers note that land-based casinos rely heavily on machine revenue to cover staff costs, maintenance and regulatory compliance. When tax rates rise sharply on that revenue stream, operators must either absorb the cost through reduced margins or pass effects downstream through reduced services and staffing levels. Genting's modelling shows that several sites would cross into negative territory, leaving management with limited options beyond closure or major restructuring.
Broader Revenue Concerns for the Treasury
The company has highlighted that reduced trading activity at affected venues could ultimately lower total tax receipts collected by the Treasury rather than increase them. Lower footfall and machine usage would shrink the overall tax base even if the percentage rate climbs. Data from industry monitoring indicates that similar tax adjustments in other sectors have sometimes produced smaller net returns once behavioural responses and venue closures are taken into account.
Investment and Development Implications
Capital projects such as the Trocadero redevelopment require predictable cost structures before operators commit substantial funds. A sudden doubling of Machine Games Duty alters those projections and may delay or cancel expansions that would otherwise generate construction jobs and long-term economic activity. Genting has referenced its internal modelling on MGD impact when discussing these risks with policymakers and stakeholders.
Industry Context and Next Steps
Land-based casino operators across the UK now await further details on the timeline and final form of the proposal. Consultation processes typically allow affected businesses to submit evidence on employment, investment and fiscal outcomes before legislation advances. Genting Casinos UK has already shared its venue-specific data and cost projections with relevant government departments.
Conclusion
The proposed increase in Machine Games Duty presents measurable challenges for Genting Casinos UK and similar operators. Thirteen venues, more than 850 positions and planned investments worth tens of millions sit at the centre of the discussion. Treasury revenue outcomes remain uncertain until the full economic effects become clearer through further analysis and stakeholder input.