Genting ‘itching to invest’ further in UK market but wary of looming MGD hike

On Wednesday, leading figures from the UK’s casino sector issued a warning that the possible doubling of machine games duty (MGD), combined with wider economic pressures, threatens to impede investment and put jobs at risk, just as the industry seeks to modernise.

The comments were made during a panel discussion held at the Hippodrome Casino in London featuring executives from major operators Rank Group, Genting Casinos and the Hippodrome, alongside representatives from the Night Time Industries Association (NTIA) and consultancy Regulus Partners. 

Investment is key 

Richard Harris, CEO of Rank Group, expressed concern over the cumulative impact of increased taxation, tighter regulation and rising operating costs.

“In my four and a half years, we’ve closed four of our venues,” Harris said. He attributed closures to the challenging financial environment caused by a high cost base, escalating taxes and regulatory tightening, stressing these factors had collectively strained profitability and cash generation.

Harris highlighted that speculation around higher taxes had already impacted investment decisions. This view was echoed by Paul Willcock, COO of Genting Casinos, who described the prospect of MGD hikes as “keeping us all awake”.

The potential MGD hike from 20% to 40% was proposed by thinktank the Social Market Foundation a few months ago and has been reported as being possibly on the agenda for the government’s upcoming autumn budget.

However, the sector has fiercely opposed the proposal warning it could be detrimental to their retail businesses.

In September, Betfred owner Fred Done emphasised that such a tax rise would lead his company to close 495 of its shops within a year, resulting in the loss of 2,575 jobs and roughly £67 million in foregone tax revenue for the Exchequer.

“If we can get some relaxation or at least certainty on that, then investment will flow,” Willcock told the audience.

He emphasised Genting’s ongoing global investment efforts, noting the operator was ready and willing to expand in the UK, as long as a stable fiscal and regulatory climate is in place.

“Genting has invested $5 billion on the Las Vegas Strip in the last five years. Spent $5 billion in New York and $3 billion in Singapore,” he said.

“It is itching to invest in the United Kingdom.” 

Simon Thomas, executive chairman of the Hippodrome, framed the issue in terms of industry confidence. He said operators needed assurance that “playing conditions” and the regulatory and financial environment would remain stable over typical investment horizons of three to seven years. 

Harris concurred, summarising that “profit is the source of future investment” It is consistent conditions that enable operators to generate and deploy profits effectively.

Modernisation reforms yield positive signs but require time

The panel welcomed the Gambling Commission’s 2025 land-based modernisation reforms, which increased the number of slot machines per casino from 20 to up to 80 and relaxed ancillary betting rules.

Rank Group’s Harris revealed that the company had expanded its machine estate by approximately 65% from 1,400 to 2,250 machines, investing £15 million in a single venue, driven by these reforms.

However, panellists cautioned that these changes require time to fully embed and stressed that tax stability must accompany regulatory liberalisation for the sector to flourish. 

Dan Waugh, partner at Regulus Partners, highlighted the importance of measuring whether reforms had improved customer experience and broadened appeal: “Are these better places to go to as a result of the regulated reforms? And also, is the experience more widely attractive?”

A huge drop in staffing should MGD rise proceed

The casino sector has identified a planned investment pipeline of roughly £200 million over the next few years, the panel said.

Michael Kill, CEO of the NTIA, emphasised the potential wider economic benefits of sustained casino investment, including supporting high streets, night-time economies, jobs and local supply chains.

In a report presented by the NTIA at the panel, Kill revealed that out of responders (formed of a mixture of casino attendees and the general public) 58% identified the casino as their primary reason for visiting an area, with 55% stating they would likely not have visited the area without the casino’s presence.

Additionally, the NTIA found that if MGD did rise, job losses both direct and indirect could reach around 3,800 nationally. A survey involving 23 operators indicated that with a tax rise, 95.7% would reduce staffing levels and 91.3% would cut investment in venues.

Notably, 60.9% might be forced to close a venue outright.

Putting people at the forefront

Representatives underscored casinos’ role as significant employers and valued community contributors.

Willcock noted that Genting employs about 3,500 people in the UK and outlined rigorous training processes. “There’s significant training, six weeks training before anybody can go anywhere near a casino table,” he said. 

Both Kill and Waugh elaborated on casinos’ broader societal impact, highlighting enhanced perceptions of safety in town centres during late-night hours and the use of venues for community meetings.

Kill pointed out an often-overlooked benefit: “People coming after midnight actually felt safe because of the service levels, because of the engagement, the lighting, etc.”

Industry calls on government for stability and time

The panellists collectively urged the government to allow its 2025 reforms to fully take effect without approving immediate additional tax increases.

Kill pleaded for “a chance to bed in” these reforms and recognition of casinos as integral to extended hospitality offers capable of supporting 24-hour economies.

Willcock and Harris emphasised that a clear, durable fiscal framework would act as a catalyst for further large-scale investments. 

Waugh cautioned against policy driven excessively by “public health dogma”. He advocated instead for balanced regulation that protects consumers while enabling sustainable business growth.

Regulus released an analysis recently that estimated the horse racing industry could face a loss of around a third of its annual revenue – £92 million – should the duty rise.