Operator warns that more casinos will close if Machine Games Duty increases
Genting Casinos has concluded a consultation process with all colleagues at its Coventry casino. After exploring every available option, it has made the difficult decision to close the venue, as it is no longer commercially viable to sustain trading, compounded by wider commercial pressures facing the land-based casino sector.
This closure demonstrates the real-world consequences of a business environment in which costs continue to rise, while taxation places increasing pressure on commercial viability. In recent years, casinos have absorbed substantial increases in employment costs, business rates, energy costs and regulatory compliance expenditure, alongside increases in gaming taxation.
.A Genting spokesperson said: “These cumulative pressures have significantly reduced margins across the sector and are making it increasingly difficult for highly regulated venues to remain commercially sustainable. Any increase in Machine Games Duty will force the closure of multiple venues across the country, resulting in the loss of hundreds of skilled jobs and reducing economic activity in towns and cities where casinos form part of the leisure, hospitality and night-time economy.”
“Such closures would also reduce investment in local communities, diminish consumer choice and ultimately reduce tax revenues from a sector that already makes a significant contribution to the UK economy.
“Furthermore, organised crime is increasingly exploiting the erosion of the regulated gambling sector by establishing illegal casinos on the high street. The Gambling Commission has raided five such venues since May, demonstrating the rapid growth of a dangerous and completely unregulated black market. It is with regret that we deliver this news, and we have worked hard to support colleagues over the consultation period during these difficult circumstances.”
Genting recently warned that 13 of its 32 British casinos would be unprofitable and would face closure if the government brings in a proposed doubling of gaming machine tax.
Paul Willcock, CEO of Genting Casinos UK, added that 850 jobs would be at risk if gaming machine duty doubles from 20 per cent to 40 per cent