A shadow of uncertainty hangs over the UK’s casino industry as the Autumn Budget approaches, with whispers of a potentially crippling tax hike. Simon Thomas, executive chairman of The Hippodrome Casino, has voiced deep concern over rumors that Machine Games Duty (MGD) could surge from its current 20% to a staggering 50%.
Thomas argues that such a dramatic increase would completely negate the positive impact of recent government reforms. Just this summer, the Department for Culture, Media and Sport introduced a modernization package designed to revitalize the sector and offer casinos greater flexibility.
The initial response to these reforms was immediate and promising. Within weeks, operators pledged over £300 million in new investment, sparking tangible regeneration projects in communities across the UK – a clear sign of renewed confidence.
The Hippodrome Casino itself stands as a testament to this potential, having invested a total of £65 million since 2012, including a recent £1.5 million injection into a state-of-the-art sportsbook. This demonstrates a commitment to growth and community investment.
However, Thomas warns that a 50% MGD would unravel this progress, jeopardizing the fragile recovery casinos are experiencing. He stresses that such a tax increase would lead to closures and threaten thousands of skilled jobs.
The industry is still reeling from the pandemic and years of economic hardship. Revenues remain 22% below pre-Covid levels – a 43% drop when adjusted for inflation – and rising costs across the board are squeezing already tight margins.
The government’s recent reforms offered a pathway to sustainable rebuilding, but Thomas believes a tax hike now would dismantle that framework. He implored the Treasury to consider the devastating consequences of such a decision.
All eyes will be on the Autumn Budget announcement on November 26th, 2025, as the fate of the UK’s casino sector hangs in the balance. The decision will reveal whether the government prioritizes growth and investment, or risks undermining a recovering industry.
