Genting UK CEO Raises Concerns Over Machine Games Duty Increase

Paul Willcock, chief executive of Genting UK, has outlined the potential consequences of a proposed rise in Machine Games Duty from 20 percent to 40 percent on gaming machines located in the company's casinos. According to the statement, such a change would render 13 of the firm's 32 UK sites unprofitable, place more than 850 positions in jeopardy, and ultimately lower overall tax collections once closures occur. The argument centers on the direct link between higher operating costs and reduced viability for land-based venues that already operate under strict regulatory frameworks.

Details of the Tax Proposal and Company Response

Willcock presented these figures during discussions around the duty adjustment, noting that the increased rate would apply specifically to machines in casino settings. Data from the company shows that current margins at several locations already sit close to break-even points, and the doubling would push a significant portion into sustained losses. Observers note that similar tax structures in other jurisdictions have prompted operators to scale back machine offerings or consolidate sites rather than absorb full cost increases. Genting UK operates across multiple cities, and the affected venues include a range of sizes from larger entertainment complexes to smaller city-center properties that contribute to local employment and visitor spending.

Those who've reviewed the company's submissions point out that closures would remove not only the direct gaming tax but also associated business rates, VAT on ancillary services, and payroll contributions tied to staff wages. The projection of lost revenue stems from the assumption that unprofitable sites cannot continue trading indefinitely without additional capital support, which the operator has indicated would not be forthcoming under the revised duty level.

Genting's Investment Record and Expansion Plans

Since entering the UK market, Genting has directed nearly £1 billion into its estate, covering refurbishments, technology upgrades, and new developments. One current project involves a £50 million transformation of London's Trocadero site into a combined casino and entertainment venue expected to generate between 350 and 400 permanent roles once operational, along with temporary construction positions during the build phase. This initiative forms part of a broader strategy to reposition physical casinos as multi-use destinations that draw both domestic visitors and international tourists.

Company records indicate that these investments have supported upgrades to gaming floors, dining facilities, and event spaces at existing properties while maintaining compliance with all licensing conditions. The Trocadero redevelopment, in particular, aims to integrate casino gaming with wider leisure offerings that align with city-center regeneration goals and night-time economy objectives. Figures released by Genting show consistent capital expenditure across the portfolio, with allocations directed toward both maintenance and growth projects that sustain supplier contracts and local supply chains.

Role of Regulated Casinos in Local Economies

Modern land-based casinos function as regulated entertainment destinations that contribute to tourism, footfall in city centers, and support for surrounding businesses such as hotels, restaurants, and transport services. Evidence from industry reports compiled by groups like the American Gaming Association illustrates how physical venues generate measurable economic multipliers through direct employment and indirect spending in adjacent sectors. In the UK context, operators maintain that well-regulated sites provide controlled environments where player protections and tax compliance remain central to licensing conditions.

Researchers at institutions such as the Griffith University Centre for Gambling Research have examined similar markets and found that abrupt tax escalations can accelerate site rationalization, reducing the overall tax base when venues exit rather than adapt. Genting's position echoes these patterns by emphasizing that the proposed duty level would affect not only its own operations but also the wider ecosystem of suppliers, contractors, and service providers that depend on ongoing casino activity. The company has highlighted its track record of nearly £1 billion in UK investment as evidence of long-term commitment, provided the fiscal environment remains sustainable for continued operation.

Conclusion

The arguments advanced by Genting UK outline a direct relationship between the Machine Games Duty rate, site profitability, employment levels, and net tax receipts. With 13 venues identified as vulnerable under the 40 percent rate and over 850 roles potentially affected, the operator has presented data showing that closures would remove multiple revenue streams beyond the gaming duty itself. At the same time, ongoing projects such as the Trocadero redevelopment and cumulative investments approaching £1 billion demonstrate the scale of capital already committed to the UK market. These elements together form the factual basis of the submission against the proposed increase, focusing on operational viability and the economic role of regulated casino venues.