UK Casino Groups Flag Major Risks From Planned Machine Games Duty Increase
Written by Sam Beck · Oct 4, 2026
UK Casino Groups Flag Major Risks From Planned Machine Games Duty Increase
Executives at Genting UK, the operator of 32 casinos across the country, have outlined the potential impact of a proposed rise in Machine Games Duty from 20 percent to 40 percent ahead of the Chancellor’s Budget scheduled for October 28. The company indicated that such a change would render 13 of its venues unprofitable or unsustainable, prompting closures that place approximately 900 positions in jeopardy. This assessment comes as government officials weigh revenue-raising measures that include higher taxation on fixed-odds betting terminals used for games such as roulette and blackjack.
The warning follows a July recommendation from a think tank that suggested increasing the duty rate, and officials continue to review the option as part of broader fiscal planning. Genting UK’s statement details how the doubled rate would affect operational viability at multiple sites, with the resulting job losses concentrated in regions where these venues serve as significant local employers.
Parallel Concerns From Rank Group
Rank Group, which owns Grosvenor Casinos, has issued a comparable assessment, projecting that up to 16 locations could close under the same tax adjustment and that around 1,800 roles might be eliminated. Company representatives described the duty increase as a direct threat to the sustainability of multiple properties, noting that fixed-odds betting terminals form a core revenue component at many outlets. Both operators have supplied data to policymakers showing projected profit margins after the rate change, and those figures indicate negative returns at the affected sites.
Observers note that the two companies together account for a substantial share of the UK’s land-based casino sector, so simultaneous closures would represent a noticeable contraction in available venues. The proposals target machines that deliver games with fixed odds, and the tax applies to the net takings from those devices rather than to overall casino revenue.
Background on the Tax Proposal
The Machine Games Duty adjustment under consideration would apply uniformly to qualifying terminals, and the July think tank report supplied modeling that estimated additional annual revenue for the Treasury. Policymakers have not yet confirmed whether the full doubling will appear in the October 28 Budget, yet industry submissions have already highlighted site-by-site profitability thresholds that would be crossed at the higher rate. Genting UK and Rank Group each supplied venue-specific projections that map current duty payments against expected liabilities after the increase, and those calculations show clear shortfalls once costs such as staffing, licensing, and property overhead are included.
Data supplied by the operators also track employment levels at each location, allowing direct translation of closures into job impacts. The 13 Genting venues and 16 Rank properties identified as at-risk employ staff across gaming, hospitality, and security functions, and the combined figure of roughly 2,700 positions reflects the total exposure if both sets of closures proceed.
Operational Details and Revenue Context
Fixed-odds betting terminals generate a defined portion of revenue at UK casinos, and the duty is calculated on the gross profit from those machines before other operating expenses. The proposed rate change would therefore increase the tax burden proportionally on that profit stream, and executives have stated that many sites lack sufficient alternative income sources to absorb the extra cost. Genting UK’s portfolio includes a mix of larger urban casinos and smaller regional venues, and the 13 locations flagged as unsustainable tend to be those with lower overall footfall and higher reliance on machine play.
Rank Group’s analysis similarly isolates properties where machine revenue constitutes the majority of earnings, making the duty hike particularly acute. Both companies have indicated that they have already examined cost-reduction measures short of closure, yet the scale of the tax increase exceeds the savings available from those steps. The October 28 Budget date remains the key decision point, and Treasury officials continue to receive submissions from affected operators while finalizing fiscal measures.
Conclusion
The statements from Genting UK and Rank Group provide concrete projections of venue closures and employment effects tied directly to the proposed Machine Games Duty increase. Those figures, drawn from internal financial modeling, show that 13 Genting sites and up to 16 Rank sites would cross into unprofitability at the 40 percent rate, placing roughly 2,700 jobs at risk if the change takes effect. The July think tank suggestion supplied the initial policy rationale, and the October 28 Budget will determine whether that recommendation advances into legislation.