The British casino sector has launched a harsh warning to the Government about the possibility that the next Budget will include an increase in the Machine Games Duty (MGD) (the tax on gaming machines). The Betting and Gaming Council (BGC) and several flagship operators have warned that any increase above the current rate of 20 percent would put at risk hundreds of millions of pounds already committed in investment, in addition to the closure of casinos and thousands of jobs.
The message is articulated in an article signed by Simon Thomas, executive president of The Hippodrome Casino and president of the BGC casino committee, entitled "Don't pull the rug from under a recovering casino sector", published as associated content on the PoliticsHome portal. In it, Thomas asks the Minister of Economy Rachel Reeves to rule out any increase in the MGD and maintain the current balance between fiscal collection and investment capacity of the sector.
The warnings come a few months after the Department of Culture, Media and Sport (DCMS) approved a modernization package for face-to-face play that the sector had been demanding for years. The measures include a more proportionate allocation of gaming machines in casinos and the possibility of offering sports betting in the salon, with the aim of adapting the regulation to the current habits of the customers.
DCMS Minister Stephanie Peacock defended these changes as a way to "unlock additional investment throughout the country" and "return the casino sector to a stable base." The Minister of Gaming, Baroness Twycross, for her part highlighted the contribution of casinos to employment, tax collection and the night economy and estimated that modernization could increase the Gross Gambling Yield of the subsector by up to 58 million pounds.
According to the BGC, those reforms have already begun to translate into investment announcements of more than 300 million pounds in urban regeneration projects across the United Kingdom.
More than 300 million pounds committed to new projects
Among the projects that Thomas cites are:
The Hippodrome Casino, in London's West End, where around £65 million has been invested since its opening in 2012 (50 million at launch and subsequent expansions), including recently a first-level bookmaker valued at 1.5 million, which helps sustain more than 820 jobs and attract about 1.4 million visitors a year.
Rank Group, which has committed 60 million pounds annually for two years to modernize its premises.
Genting, with a new 40 million casino in London's Trocadero and a 10 million reform in Southend.
Grosvenor, which is transforming the historic Victoria Casino with an investment of 15 million.
Bally's, with 3.7 million pounds in Newcastle that secure 170 jobs.
The BGC emphasizes that these figures not only benefit casinos, but also sectors such as construction, hospitality, technology and entertainment, and that they contribute to revitalizing urban centers and commercial axes at night.
The risk of a Machine Games Duty rise
In parallel with this investment movement, the Treasury and various pressure groups are analyzing possible tax increases on gambling in the face of the Budget of November 26, including a review of the MGD, which taxes gambling machines in physical premises and which currently stands at 20 percent for the most popular devices.
The BGC Casino Group has warned in a specific statement that any increase in the MGD would "undermine the vital investments" that have been launched after the DCMS reforms. According to his analysis, an increase of up to 25 percent would make many of the announced projects unfeasible and could cause the closure of up to 40 casinos, with the loss of about 3,500 jobs, which would be equivalent to approximately a third of the sector's workforce in the United Kingdom.
Thomas recalls that the casinos "have just begun to recover" from the pandemic and years of economic pressure. According to the figures presented by the BGC, income remains 22 percent below pre-Covid levels, which is equivalent to a 43 percent drop in real terms, while energy costs, wages and social contributions continue to rise.
"Arising the MGD would not increase the collection, it would destroy it"
In his article, Thomas insists that an increase in the MGD would "undo the advances" achieved by regulatory modernization, reverse the newly achieved stability and "put thousands of skilled jobs at risk." The BGC estimates that the casino sector employs about 11,000 people across the country and contributes hundreds of millions of pounds in taxes every year.
The CEO of the BGC, Grainne Hurst, goes even further and assures that "raising the MGD would not increase the collection, it would destroy it," since it would force the closure of currently viable casinos and would cut the future income of the Treasury.
The sector also recalls its role as the engine of the night economy. Michael Kill, executive director of the Night Time Industries Association, warns that an increase in taxation would threaten the casino model as a comprehensive leisure destination, which combines game with gastronomic offer, shows, live music and other cultural formats. In his opinion, the investment strategy in entertainment, hospitality and catering is helping to create "future-proof destinations" that sustain employment, boost the main shopping streets and favor a 24-hour urban economy.
A direct message to the Treasury
In its formal allegation to the Treasury, the BGC Casino Group asks to keep the MGD rate at the current 20 percent. The sector considers that this level of taxation achieves a reasonable balance between a significant contribution to the public coffers and the ability to reinvest in employment, facilities and technologies that strengthen player protection.
"The government's reforms gave our sector stability and hope. We responded with long-term investments and clear commitments to the country's economic recovery. The only thing we ask now is consistency and that we be allowed to fulfill those promises," Thomas concludes in his appeal to the minister.
Dingnews.com 25/11/2025