You can’t tax a casino if it’s closed

Modern casinos contribute significantly to city centers, create skilled local jobs, and bolster Britain's visitor and night-time economy. Paul Willcock argues that tax policy should acknowledge their full contribution. While politicians from all parties desire business investment, regeneration, job creation, and overseas visitor attraction, a proposal to double gaming machine tax from 20% to 40% could have the opposite effect.

This would discourage investment, jeopardize jobs, and potentially reduce revenue for the Treasury. The debate should not solely focus on one gambling tax; instead, it should consider the broader question of what kind of leisure, visitor, and night-time economy Britain wants. Modern land-based casinos contribute to the economy beyond gaming, including hospitality, food, drink, live entertainment, and socializing.

Transforming the London Trocadero showcases this proposition with a £50m project that would create between 350 and 400 permanent jobs and support additional roles during development. Casinos act as ecosystem economies, drawing people into areas and supporting nearby businesses such as hotels, restaurants, theatres, shops, bars, and transport services.

Closing a casino negatively impacts the surrounding night-time economy, as visitors may spend less elsewhere. This applies to other cities as well, with Genting investing in Manchester's Portland Street Casino, committing millions to refurbishments across various UK locations. Doubling machine duty would add £16m to Genting's annual cost base, potentially rendering 13 of their 32 casinos unprofitable or unsustainable and putting over 850 jobs at risk.

Casinos provide skilled local employment, which forms part of Britain's hospitality employment base and offers human infrastructure for safe, well-run leisure venues. The public-policy question involves where and under what conditions gambling takes place, with regulated casinos operating in visible, highly regulated environments with age controls, security, trained staff, customer interaction, and regulatory oversight.

Policymakers should weigh the fiscal implications of the proposed tax rise, as closed casinos would stop paying various taxes, potentially outweighing the additional machine duty from remaining venues.