UK casino chiefs say MGD doubling threatens investment and jobs, as Genting says it is 'itching to invest'

Leading figures from the UK casino sector have warned that a possible doubling of machine games duty (MGD), together with wider economic pressures, could hold back investment and put jobs at risk just as the industry tries to modernise. The comments came at a panel discussion at the Hippodrome Casino in London, with executives from Rank Group, Genting Casinos and the Hippodrome, as well as representatives of the Night Time Industries Association (NTIA) and consultancy Regulus Partners.

The proposal to lift MGD from 20% to 40% was put forward by the Social Market Foundation some months ago and has been reported as a possible item for the government's autumn budget. Rank Group CEO Richard Harris pointed to the combined effect of higher taxes, tighter regulation and rising costs, saying the company has closed four venues in his four and a half years in the role. He said speculation about tax rises was already affecting investment decisions. Genting Casinos COO Paul Willcock said the prospect of an MGD increase was "keeping us all awake".

Willcock said Genting has invested $5 billion on the Las Vegas Strip over the past five years, $5 billion in New York and $3 billion in Singapore, and added that it is "itching to invest in the United Kingdom" if a stable fiscal and regulatory climate is in place. Hippodrome executive chairman Simon Thomas said operators need confidence that conditions will remain stable over typical investment horizons of three to seven years.

The panel welcomed the Gambling Commission's 2025 land-based modernisation reforms, which raised the permitted number of slot machines per casino from 20 to up to 80 and relaxed ancillary betting rules. Harris said Rank expanded its machine estate by about 65%, from 1,400 to 2,250 machines, including a £15 million investment in a single venue. Panellists said the changes need time to bed in and that tax stability should accompany regulatory liberalisation. The sector has identified an investment pipeline of roughly £200 million over the next few years.

NTIA CEO Michael Kill presented research in which 58% of respondents said a casino was their main reason for visiting an area, and 55% said they would likely not have visited without it. The NTIA estimated that an MGD rise could lead to around 3,800 direct and indirect job losses nationally. In a survey of 23 operators, 95.7% said they would reduce staffing, 91.3% would cut venue investment and 60.9% might have to close a venue.

In September, Betfred owner Fred Done said such a rise would lead his company to close 495 shops within a year, with 2,575 jobs lost and about £67 million in foregone tax revenue. Panellists urged the government to let the 2025 reforms take full effect before considering further tax increases, while Regulus Partners' Dan Waugh cautioned against policy driven by "public health dogma".