Treasury is considering doubling slot tax from 20 to 40 per cent
Genting Casinos UK has 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.
In an opinon piece written for CityAM, Willock said: “For Genting, doubling machine duty would add about £16m a year to our cost base. Our modelling suggests that 13 of our 32 casinos would become unprofitable or unsustainable. More than 850 jobs in those venues would be at risk, together with around 50 roles in the teams that support them.”
He explained that casinos employ croupiers, chefs, bar staff, cleaners, security officers, customer-service teams and managers, all of whom need training, experience and opportunities to progress.
He said: “Tax policy must also consider the distinction between regulated and unregulated gambling. It would be wrong to overstate or assume a direct displacement effect. But if highly regulated, visible operators and venues become less viable, the government should assess where demand may move and what that could mean for consumer protection. Weakening the regulated sector without considering the alternatives would be a serious policy omission.
“Before making any change, the Treasury should assess the impact on individual venues, employment, investment, city-centre regeneration, the visitor economy, consumer protection and total tax receipts. Government says it wants private investment, growth, tourism and thriving high streets and city centres. It should not pursue a policy that weakens businesses delivering precisely those outcomes,” he added.
“A policy that turns investment into closures is not pro-growth. A tax rise that costs jobs, weakens regulated venues and ultimately raises less revenue is not reform. It is self-defeating. You cannot tax a casino that has closed.”
“There is also a basic fiscal problem with the proposed rise. Casinos that remain open would pay more machine duty, but those forced to close would stop paying a range of taxes altogether. Our modelling indicates that the revenue lost through closures would outweigh the additional machine duty collected from the remaining venues. The Treasury could raise the rate and still receive less overall, while hundreds of skilled employees lose their jobs.”
“Politicians of every party say they want businesses to invest in Britain, regenerate city centres, create good jobs and attract overseas visitors. Genting is doing exactly that, from Manchester to the West End. Yet a proposal to double the tax on gaming machines from 20 to 40 per cent would pull in the opposite direction. It would discourage investment, put jobs at risk and could leave the Treasury with less revenue, not more.”