Genting UK CEO Paul Willcock Outlines Economic Risks Tied to Machine Games Duty Proposal

Paul Willcock, chief executive of Genting UK, published an opinion piece that examines the consequences of a proposed increase in Machine Games Duty from 20 percent to 40 percent, and the article appears in City A.M. under the headline "You can't tax a casino if it's closed." The UK government, including Prime Minister Andy Burnham, has considered this adjustment to the tax rate applied to gaming machines, and Willcock presents data on how the change would affect operations across the company's 32 UK casinos.

Projected Effects on Profitability and Employment

According to the opinion piece, the higher duty rate would render 13 of the 32 casinos unprofitable once implemented, which in turn places more than 850 direct positions at risk along with numerous support roles in supply chains and local services. Observers note that casino closures would also diminish overall tax contributions because shuttered venues generate no revenue, a point Willcock illustrates by referencing the basic arithmetic of taxation on operating businesses rather than on empty properties. Those who've examined similar tax shifts in other jurisdictions know that revenue forecasts often require adjustments when operators scale back or exit markets entirely.

Willcock frames contemporary UK casinos as tightly regulated destinations that contribute to tourism strategies and the night-time economy, and the opinion piece cites specific examples of how these venues operate under existing licensing rules that already impose responsible gambling measures and age verification protocols. Data from industry reports prepared by the American Gaming Association indicates that well-supervised casino environments can generate measurable local economic multipliers through employment and supplier spending, although the precise figures vary by location and regulatory framework. Because the proposed duty increase targets machines specifically, operators face decisions about whether to retain older sites or consolidate resources at fewer, higher-performing locations.

Government Consideration and Industry Response

The opinion piece arrives while policymakers review fiscal options ahead of future budget cycles, and Willcock argues that the current 20 percent rate already balances public revenue needs with the requirement for venues to remain viable. Those who've studied tax elasticity in leisure sectors often find that abrupt rate doublings can accelerate site rationalisation, particularly when combined with rising operational costs such as energy and staffing. Genting's portfolio includes both historic high-street casinos and newer integrated developments, which means the impact would not fall evenly across all properties.

City centre economies benefit from the presence of licensed entertainment spaces that operate late into the evening, and the Trocadero scheme represents one instance where casino investment aligns with broader regeneration goals set by local authorities. Figures released by Genting show that prior UK investments have already supported construction employment and ongoing operational roles, yet the opinion piece warns that further tax pressure could limit the scope for additional projects of similar scale. International comparisons appear in the article as well, with references to how other regulated markets structure machine taxation to avoid unintended contraction in the sector.

Looking Ahead

The debate over Machine Games Duty continues to unfold as stakeholders submit evidence to government consultations, and Willcock's contribution supplies concrete examples drawn from Genting's balance sheets and development pipeline. Policymakers must weigh short-term revenue projections against longer-term outcomes that include employment levels and the continued operation of regulated venues. A second external perspective comes from the OECD analyses of excise taxation, which note that rates applied to specific leisure activities require calibration to prevent market exit by established operators.

Observers tracking the UK casino landscape recognise that any final decision on the duty rate will shape investment decisions for years ahead, particularly for companies that have committed substantial capital to modernising historic entertainment districts. The opinion piece therefore serves as one data point among several that decision-makers will consider before finalising changes to the tax regime.