Genting UK warns 13 casinos could close if machine tax doubles

  • Genting UK warned that 13 of its 32 casinos could close after a proposed machine-tax increase.
  • Genting said the proposed tax change would cost about £16 million and threaten 900 jobs.
  • Rank Group and other gaming operators have separately warned of closures, job losses and unprofitable venues.

Genting UK chief executive Paul Willcock warned that 13 of the operator's 32 venues would become unprofitable or unsustainable if John Healey doubles machine games duty (MGD), a tax on gaming-machine revenue, from 20% to 40% in the Budget on Oct. 28. The closures would put 900 jobs at risk, while the increase would cost Genting about £16 million, exceeding its £13.5 million post-tax profit last year. Rank Group has separately warned that up to 16 of its 47 casinos could close, putting 1,800 jobs at risk. Together, the 29 threatened venues represent almost one-third of the 108 casinos remaining across the UK. The proposals have also drawn warnings from betting-shop and gaming-arcade operators, with industry groups saying a higher MGD rate could cause thousands of closures and job losses while producing limited additional net tax revenue.

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