UK Treasury Proposal to Double Gaming Machine Duty Raises Concerns for Genting Casinos

The UK Treasury has put forward a plan to double the gaming machine duty rate from 20% to 40%, and this adjustment carries direct consequences for operators like Genting UK according to internal assessments released in recent weeks.

Company modelling indicates that 13 of Genting UK's 32 casinos could shift into unprofitable territory or face sustainability issues once the higher rate takes effect, while annual costs would rise by approximately £16 million and more than 850 positions plus around 50 support roles would come under pressure.

Scope of the Duty Change and Genting's Exposure

Gaming machine duty applies to revenue generated from slot-style machines located inside casinos and other licensed venues, so the proposed increase would apply across Genting's portfolio of properties throughout the United Kingdom.

Those properties include a mix of regional sites and flagship London locations, and the added tax burden would concentrate on the machines that contribute a substantial share of each venue's income.

Because the duty is calculated on gross gaming yield, the jump from 20% to 40% would effectively halve the retained margin on that segment of revenue, pushing several locations below break-even thresholds based on current trading patterns.

Leadership Response and Forward Projections

Genting Casinos UK CEO Paul Willcock outlined these outcomes in an op-ed published by City A.M., where he noted that the tax shift would also discourage further capital expenditure and could ultimately lower total Treasury receipts if closures occur.

Willcock further stated that activity might migrate toward unregulated operators outside the licensed sector, reducing the visibility and tax base that the current regime provides.

The company has already committed nearly £1 billion to its UK estate over recent years, and that level of ongoing investment would become harder to justify under the revised duty structure.

Current Development Projects and Employment Footprint

One active scheme involves a £50 million redevelopment of the Trocadero site in central London, which remains in progress and is designed to modernise facilities while preserving employment at that location.

Across the wider Genting UK network, the at-risk roles span croupiers, technicians, hospitality staff, and management teams, with the additional 50 support positions covering regional and head-office functions that service the casino estate.

These figures emerge directly from Genting's internal modelling of post-tax profitability at each site, which incorporates existing cost bases, customer volumes, and machine utilisation rates recorded over the past financial periods.

Industry Context and Revenue Considerations

The Treasury proposal forms part of broader fiscal measures aimed at increasing receipts from gambling activities, yet operators have highlighted that land-based casinos already operate under strict licensing and contribute through multiple tax streams including corporation tax, VAT, and business rates.

Shifting a larger share of machine revenue into the duty column could compress the overall taxable profit pool if venues reduce headcount or close, creating an offsetting effect on collections from other sources.

Observers tracking the sector note that Genting's scale, with 32 sites, makes it particularly exposed compared with smaller operators, although the same duty rate would apply uniformly once implemented.

Timeline and Next Steps

The proposal remains under consultation, and industry submissions including Genting's data are expected to inform final decisions before any rate change is enacted.

Company representatives have indicated that clarity on the final rate and implementation date will determine whether planned refurbishments and expansions proceed on schedule or face delays.

Conclusion

The Treasury's plan to raise gaming machine duty therefore presents measurable operational and financial challenges for Genting UK, as detailed in the company's own projections and the CEO's public commentary.

With substantial prior investment already deployed and further projects underway, the outcome of the consultation will shape both employment levels and the company's capacity to maintain its current UK footprint.