Genting Casinos has confirmed the closure of its Coventry venue following the conclusion of a staff consultation process at the site.
The company cited mounting commercial pressures as the primary reason it had no option but to make the difficult decision to shut the casino.
The closure comes amid growing concern across the land-based gambling sector over proposed hikes to Machine Games Duty that could reach as high as 40%.
Industry modelling suggests such a tax increase would render large swathes of the land-based and retail casino sector commercially unviable across the United Kingdom.
Genting Casinos UK chief executive Paul Willcock told NEXT.io that 13 of the operator’s 32 venues would be forced to close if the proposed duty hike goes ahead.
Willcock warned that the proposals, drawn up by influential thinktank the Social Market Foundation and reportedly being modelled by the Treasury, would impose an additional £16 million annual cost burden on the company.
“If the Government wants to keep gambling safe, regulated and free from crime, it must ensure that legitimate operators remain commercially sustainable,” Willcock said.
He added that policies resulting in licensed casino closures do not eliminate demand, but instead risk driving customers toward unregulated venues with no safeguards, consumer protections, or contribution to the Exchequer.
Willcock also highlighted the company’s significant tax contribution, stating: “Genting have paid three quarters of a billion in tax in 10 years, but you can’t tax a casino that has closed.”
In total, at least 850 of Genting UK’s more than 3,000 staff members would be placed at risk should the proposed Machine Games Duty increases be implemented.
A further 50 roles in the support functions underpinning the affected venues would also face an uncertain future under the outlined scenario.
The Coventry closure represents the first concrete consequence of the ongoing policy debate, signalling the very real commercial damage the proposed tax changes could inflict on the sector.
