Executives at three of the UK’s leading land-based casinos have warned up to 3,500 jobs could be lost should machine gaming duty be increased to 25%.

As Chancellor Rachel Reeves prepares to deliver the Autumn Budget next week, concerns are mounting that machine games duty (MGD) could rise from its current 20% level.

Rank Group CEO John O’Reilly, Genting UK president Paul Willcock and Hippodrome executive chair Simon Thomas have forewarned that a five-percentage point jump would have several severe consequences.

In a joint letter sent to Dan Tomlinson, the exchequer secretary to the Treasury, the trio said a 25% levy would lead to 40 casinos closures and up to 3,500 job losses.

The execs added that planned investment would be curtailed, overseas investors would be “deterred” and tax yield would ultimately decrease.

The letter noted that land-based operators have announced or confirmed £300m worth of investment into the UK, including Rank’s £120m spend over the next two years and Genting opening a new £40m casino in London.

The letter read: “An increase in MGD will inevitably lead to a reversal of these steps forward, plus casino closures and job losses.

“Operators will be forced to cancel investment plans and look to cut jobs as growth plans falter. The investment plans above would not see sufficient returns (and may even lead to losses) with a direct and material negative impact on company financial performance across the sector.

“Current investment plans will cease, and future investment won’t happen. Overseas investors will be deterred, seeing the UK market as high risk for investment. And tax yield from the sector would reduce.”

Writing in the Daily Mail over the weekend, O’Reilly described potential tax hikes as “senseless” and the London-listed firm’s planned investment would come “to a shuddering halt”.

Lobbying around gambling taxes continues to ramp up ahead of Reeves’ budget announcement on 26 November.

A report from the FT has suggested the government could put a two-tier tax system in place for sports betting, bifurcating on a retail versus online basis.

General betting duty is set at 15%, with the newspaper reporting online sports betting “is set to face a ‘slight’ increase in tax”.

Horseracing is set to survive any tax hikes, remaining at 15%. However, remote gaming duty remains in line for an increase from its current 21% rate.

The likes of evoke, Flutter and Betfred have all said retail shops could shutter amid increased taxes, while the Betting and Gaming Council has argued any hikes would only serve to benefit the black market.

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