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Impact of an increase in Machine Games Duty (MGD), on the land-based casino sector, investment, and economic growth
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This summer the DCMS brought forward into legislation a much needed modernisation and deregulation package. The reforms comprising more proportionate gaming machine allocations and the ability to offer sports betting promised to support the UK land-based casino sector, enabling (£) tens of millions of investment, and contributing to the Government’s growth agenda.
When introducing the measures in the House of Commons in June, DCMS Minister, Stephanie Peacock MP, set the scene:
“The Government is focussed on economic growth…this package of measures will unlock additional investment up and down the country” and “will put the casino sector back on a stable footing” “We expect a number of venues to be modernised and refreshed…we also
anticipate this capital investment will be spent across the country not just in London…allowing this historic sector to thrive.”
And when introducing the same measures in the Lords, the Gambling Minister, Baroness Twycross said:
“Since being appointed, I have visited casinos and witnessed the contributions that they bring with jobs, tax revenues and support for the night-time economy. The sector generates £866 million in gross gambling yield each year, with up to 50% of this paid in gaming duty.”
The Minister went on to add that the modernisation measures are estimated to increase GGY by £53million to £58million.
The BGC casino group couldn’t agree more with Ministers.
This is why we are deeply concerned that all of this progress could be wiped out, at a stroke, if there is an increase in MGD, from the current rate of 20%, in the forthcoming Budget. An increase in MGD would fundamentally undermine the sustainable footing which the new policy reforms placed the sector firmly upon.
For example, Rank Group plc (Grosvenor Casinos), the UK’s largest licensed operator of casinos, has reported that 12 of its 50 venues were loss-making in the 12 months to June 2025. These casinos have been kept in operation in the expectation that their financial performance will be improved by this summer’s legislative modernisation.
By illustration, an increase in MGD from 20% to 25% would make a third of the Grosvenor casino estate unprofitable. As well as offsetting all of the benefit Grosvenor expected to gain from the land-based policy reforms, it would not be possible to sustain loss making venues, with up to 20 casinos being forced to close. For the remaining casinos, the planned investment case, announced at £60million per annum for the next two years, would become unaffordable.
Investment committed in light of the new policy reforms
With the new policy reforms industry embarked on a programme of substantial capital
investment to upgrade existing casinos and develop new venues. Great news for the sector,
our customers, and the Government’s growth agenda.
The promised stability enabled confidence for operators to make commitments for UK-wide
investments. Operators have collectively announced or confirmed investment of £300
million, including:
- Rank Group plc investment of £60million per annum for next two years, to capitalise
on casino reforms - Genting Casino £40million new casino at the Trocadero in London’s West End
- Genting Casino Westcliff £10million refurbishment in Southend-on-Sea
- Rank’s Grosvenor Victoria Casino £15million refurbishment and expansion in London
- Bally’s £3.7million, securing 170 jobs, first UK land-based investment in Newcastle
- Hippodrome £1.5million new Sports Book venue in London’s West End
- Other multi-million pound redevelopments of casinos in Brighton, Bolton, Coventry,
Leicester, Liverpool, Manchester, and Reading.
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.
At 25% MGD, casino industry analysis shows that up to 40 casinos would close, with the loss of up to 3,500 jobs – equating to a third of the whole industry.
BGC casino group Budget submission
In our Budget submission (full copy attached) we set out for the Treasury the economic contribution of Britain’s land-based casinos and the significant challenges already facing them, which would only be exacerbated by further tax pressures.
More broadly, the sector is still recovering from the damage caused by the lockdown measures of 2020 to 2021. In the year to March 2024 (the most recent period for which data is available), customer spending (gross gaming yield) in Britain’s casinos was 22% lower than in the year to March 2019 – a 43% reduction in real terms.
At the same time, casino operators are experiencing significant cost pressures. The sector employs around 11,000 skilled (and often personally licensed) people and so is particularly sensitive to wage inflation and this year’s rise in employer National Insurance Contributions (which together will impact the sector by between £25m and £30m a year). Additionally, with the Treasury’s convention of duty revalorisation in abeyance since 2022, operators continue to suffer real-terms increases in gaming duties.
In conclusion, I am at pains to stress, that any proposed increase in MGD in the Chancellor’s budget, would lead to the closure of a large number of casinos and the loss of thousands of skilled jobs, as well as risking planned UK-wide investment in the sector.
The post Impact of an increase in Machine Games Duty (MGD), on the land-based casino sector, investment, and economic growth appeared first on European Gaming Industry News.
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Nagoshi Studio Unveils GANG OF DRAGON, a New Action-Adventure Game from Director Toshihiro Nagoshi
Steam page: store.steampowered.com/app/4146000/
GANG OF DRAGON
is a new action-adventure game set in Kabukicho, Shinjuku, Tokyo’s iconic nightlife district. Protagonist Shin Ji-seong is a high-ranking member of a Korean crime syndicate, and is portrayed by celebrated Korean actor Ma Dong-seok (Don Lee).This new story will engage players in an exciting way and showcase increadible graphics for an action packed adventure. Viewers of The Game Awards were the first to get a look at the new footage!
About Toshihiro Nagoshi
The post Nagoshi Studio Unveils GANG OF DRAGON, a New Action-Adventure Game from Director Toshihiro Nagoshi appeared first on Gaming and Gambling Industry Newsroom.
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Blask & Gamblers Connect Enter A New Media Partnership
Gamblers Connect, the award-winning iGaming affiliate and media platform, is proud to announce a new media partnership with Blask, a leading AI-powered analytics ecosystem dedicated to the iGaming industry.
This collaboration marks a pivotal step in the company’s mission to provide the most accurate, transparent, and data-backed content. Under the terms of this agreement, Blask will provide Gamblers Connect with complete access to its cutting-edge market intelligence platform.
This suite includes the Blask Index and real-time data tracking across more than 100 jurisdictions, allowing for granular analysis of market dynamics, brand performance, and player behaviour. By integrating these professional-grade tools into the editorial process, Gamblers Connect will elevate the depth and precision of its industry reporting.
The cornerstone of this partnership is a commitment to sharing knowledge with the wider iGaming community. Gamblers Connect will produce four exclusive case studies throughout 2026. Released once per quarter, these comprehensive reports will utilise Blask’s advanced analytics to uncover emerging trends, benchmark operator performance, and provide actionable insights for industry stakeholders.
This alliance represents a shared vision for a more transparent iGaming sector. By combining Blask’s technological prowess with Gamblers Connect’s editorial expertise, the aim is to set a new standard for data-driven journalism.
Max Tesla, Blask CEO, commented: “Partnering with Gamblers Connect is a natural step for Blask. We are building an ecosystem of transparent analytics that empowers the industry, and GC is one of the few media partners that truly values data and knows how to work with it. I’m confident this collaboration will strengthen both sides and deliver more accurate, trustworthy, and insight-driven content to the iGaming community.”
Gjorgje Ristikj, Founder & CEO at Gamblers Connect, added: “Partnering with Blask allows us to combine their strong analytical framework with our media expertise. It’s a collaboration grounded in trust and mutual respect, with the shared goal of delivering meaningful and measurable results to the industry.”
The post Blask & Gamblers Connect Enter A New Media Partnership appeared first on Gaming and Gambling Industry Newsroom.
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Law enforcement officers from Kazakhstan eliminated the organized financial criminal group organized by Vadim Gordievsky, Larisa Ivchenko, and Alyona Suvorova from Ukraine
The law enforcement agencies of Kazakhstan have effectively eliminated the organized criminal group created by Vadim Gordievsky from Ukraine and his accomplices, Larisa Ivchenko and Alyona Suvorova. Even though the law enforcement agencies managed to block accounts and payments of the Marginplus Company, key employees and management are still hiding.
According to the media, just a few days ago, the Financial Monitoring Agency of the Republic of Kazakhstan revealed a large-scale shady scheme of cross-border transfers that involved numerous payment organizations and providers. The funds were disguised as legal transactions and withdrawn to the accounts of online casinos. The total volume of illegal transactions exceeded more than $1 billion.
According to law enforcement authorities in the Republic of Kazakhstan, the key organizer of the miscoding scheme, which involved bookmakers, online casinos, payment organizations, and bank employees, is Vadim Ivanovich Gordievsky from Ukraine, who was born in 1974. He was the leader of the organized criminal group and used the local Marginplus Company for these purposes (official website: marginplus.kz). In addition to companies from Kazakhstan, Gordievsky also worked with illegal Russian online casinos while helping them to facilitate illegal payments.
According to new information from law enforcement agencies in the Republic of Kazakhstan, banks and bookmakers, including the local PIN-UP bookmaker, have already terminated all cooperation with Gordievsky’s Marginplus company.
According to informburo.kz, the local licensed Pin-Up.Kz bookmaker (legal entity: Bonami LLP) declares that it has nothing to do with transactions carried out by individual payment organizations. Judicial and criminal proceedings have already been initiated against these structures, and the company itself is fully cooperating with law enforcement agencies to establish all the circumstances and identify fraudulent, shady schemes.
According to unofficial information, the Pin-Up management provided the law enforcement agencies of the Republic of Kazakhstan with all the data related to the Marginplus company belonging to Vadim Gordievsky.
As of today, all financial activities of Marginplus have been paralyzed. In addition, large amounts of money have been blocked in its bank accounts. This money should have been paid to partners, contractors, and providers, including the local Parimatch betting company. Ordinary employees of Vadim Gordievsky’s company are already looking for new work while its management, including Larisa Vladimirovna Ivchenko (listed as the head of Gordievsky’s FC Alta Capital from Ukraine), is still hiding. Alyona (Elena) Suvorova has already closed and renamed her social media profiles a few days ago. In addition, she does not respond to messages and is trying to evade responsibility.
We would like to remind the audience that Alyona Suvorova positions herself “as an entrepreneur, investor, and a crypto trader with 5+ years of experience.” According to Suvorova herself, she has been developing payment technologies in the field of FinTech for 10 years. In 2021, she opened her own business for international crypto transfers. In addition, she is the founder of the Lemoncoin Crypto Academy.
According to investigators, Gordievsky’s partner, Mikhail Kovalev (Mykhaylo Kovalov), who is a citizen of both Ukraine and Israel, as well as an owner of a number of companies in the EU, in particular, in Poland, and who has a residence permit in Spain, was closely working with Gordievsky. By using the STABLEX SOLUTION Sp. z o. o fictitious company (official website: solvexs.pl) in Poland, he was engaged in illegal payments and withdrawal of cryptocurrencies into fiat money.
At the same time, as the source notes, the mentioned management and the people involved in the money laundering of Marginplus Company will be added to the wanted list of Interpol in the nearest future. The National Security Committee of the Republic of Kazakhstan has also announced that it’s going to closely monitor this case. According to local laws, participants of this shady scheme face up to nine years in prison. Information on Vadim Gordievsky’s companies and connections in other countries is also being checked.
After the initiation of criminal cases for financial crimes, fraud, and the announcement of his wanted list by the Ministry of Internal Affairs, Vadim Gordievsky left Ukraine on forged documents. Before diving into the world of financial fraud, he was involved in land and property issues in the Kyiv region. As of today, numerous criminal cases have been initiated.
The post Law enforcement officers from Kazakhstan eliminated the organized financial criminal group organized by Vadim Gordievsky, Larisa Ivchenko, and Alyona Suvorova from Ukraine appeared first on Gaming and Gambling Industry Newsroom.
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