Don’t pull the rug from under a recovering casino sector

After years of waiting, Britain’s casinos were finally handed a fair shot at survival. This summer, the Government’s long-overdue modernisation package recognised what we in the sector have known for decades - that casinos are vital anchors of Britain’s night-time economy, major employers, and powerful engines of local growth.

It was a moment of optimism for a sector that has been through more than its fair share of challenges. The reforms introduced by the DCMS - including more proportionate gaming machine allocations and the ability to offer sports betting - were not special favours. They were sensible, evidence-based updates to rules written for a different era.

As DCMS Minister Stephanie Peacock put it, these changes were designed to “unlock additional investment up and down the country” and “put the casino sector back on a stable footing.” Gambling Minister Baroness Twycross went further, praising the sector’s contribution to jobs, tax revenues and the night-time economy, and predicting a Gross Gambling Yield boost of up to £58 million.

Those reforms have already begun to deliver. Within weeks, operators announced over £300 million in new investment. Tangible regeneration projects in communities across the UK.

At The Hippodrome, we’ve invested around £65 million in total since opening in 2012 - £50 million at launch, followed by continued reinvestment and expansion, including new gaming spaces, bars, entertainment, and most recently, a £1.5 million world-class sportsbook in the heart of London’s West End. Every penny has been privately funded and locally rooted, helping sustain over 820 jobs and attracting over 1.4 million visitors each year.

Rank Group committed £60 million a year for two years to modernise venues. Genting announced a £40 million new casino at London’s Trocadero and a £10 million refurbishment in Southend. Grosvenor is transforming the iconic Victoria Casino with a £15 million upgrade. Bally’s has invested £3.7 million in Newcastle, securing 170 jobs.

These investments don’t just support casinos. They sustain jobs in construction, hospitality, technology and entertainment, while breathing life into town centres and high streets. Casinos are increasingly multi-dimensional destinations. They combine gaming with restaurants, bars, live music and performance. We are at the forefront of the shift towards 24-hour, mixed-use city centres that attract visitors and drive growth.

That’s why talk of a potential rise in Machine Games Duty (MGD) in this year’s Budget is so deeply alarming. Any increase from the current 20 per cent rate would reverse the benefits of the Government’s own reforms before they’ve even had the chance to take root.

Let’s be clear: this is not a sector crying wolf. Analysis by the Betting and Gaming Council shows that a rise to 25 per cent would make many of these investment projects financially unviable. Around 40 casinos would close, costing 3,500 jobs. That equates to a third of the entire UK casino workforce.

As I’ve said in our submission to the Treasury: “An increase in MGD would fundamentally undermine the sustainable footing the new reforms have created. It would reverse progress, lead to closures, and put thousands of skilled jobs at risk.”

Casinos are only just beginning to recover from the pandemic and years of economic pressure. Our revenues are still 22 per cent below pre-Covid levels, equivalent to a 43 per cent fall in real terms. Rising costs from energy to wages and employer National Insurance contributions continue to squeeze margins. The Government’s reforms gave us a framework to rebuild sustainably. A tax hike now would tear that away.

Casinos contribute hundreds of millions in tax revenues each year and support 11,000 highly skilled jobs across the country. Many of these roles are full-time, stable, and come with training and career progression. The kind of employment Britain’s towns and cities need more of.

As BGC CEO Grainne Hurst has rightly warned: “Raising MGD would not raise revenue, it would destroy it, by forcing viable casinos to close.” She’s right. Every casino that shuts its doors means lost tax receipts, lost employment, and lost local regeneration.

That impact wouldn’t stop at our doors. Casinos sit at the heart of the wider night-time economy, supporting surrounding businesses from hotels and bars to taxis and theatres. As Michael Kill, CEO of the Night Time Industries Association, has said: “Strategic investment in entertainment, hospitality, restaurants, bars and live shows is shaping casinos into future-proof destinations that will sustain jobs, energise high streets, and underpin a vibrant 24-hour economy".

That’s the future we should be building - dynamic, all-hours destinations that blend gaming with food, music, culture and creativity. Casinos could become active partners in DCMS’s Creative Plan, helping to revitalise urban centres and diversify Britain’s cultural offer. But that vision depends on financial headroom. Push up taxes now, and that opportunity vanishes.

The Chancellor faces a simple choice in this Budget. She can consolidate the benefits of reform, encourage private investment, and support a sector ready to create jobs and drive growth. Or she can undo her colleagues’ good work, deter investment, and risk pushing the industry backwards.

The Government’s modernisation reforms gave our sector stability and hope. We took them at their word and committed to investing in Britain’s economic recovery. All we ask now is consistency and to be allowed to deliver on those commitments.

The current 20 per cent rate of Machine Games Duty strikes the right balance between a fair contribution to the Treasury and the ability to reinvest in people, places and innovation. Raising it would be an act of self-sabotage, cutting off a growing source of tax revenue just as it begins to flourish.

Casinos are proud to be part of Britain’s entertainment and tourism landscape. We are ready to invest, to modernise, and to support local economies across the UK. But we can only do that if the goalposts stay still.

So my message to the Chancellor is clear: resist any temptation to raise Machine Games Duty. Protect jobs, protect investment, and protect growth.