Entain has stepped up pressure on the UK government over possible further gambling tax increases, warning Prime Minister Andy Burnham that higher duties on gaming machines could put betting shops and thousands of jobs under additional strain.
The Ladbrokes and Coral owner is also preparing to cut as many as 400 positions from its UK customer-care operation, equivalent to roughly 20% of a workforce of around 2,000. Reuters reported that the restructuring comes as the company faces mounting costs following earlier gambling-tax changes and uncertainty over measures that could appear in the Autumn Budget.
Chief Executive Stella David has written directly to Burnham ahead of the Budget scheduled for 28 October, focusing on reports that Chancellor John Healey is considering substantial increases to Machine Games Duty (MGD).
Entain operates more than 2,300 betting shops across Britain and argues that a sharp increase in the levy on gaming machines would significantly raise the cost of maintaining its retail estate.
Machine Games Duty under scrutiny
The government is considering raising taxes on higher-stake gaming machines while seeking to protect lower-stake machines commonly found in pubs, bingo clubs and seaside amusement venues, according to the Financial Times.
One proposal would double the standard MGD rate applied to many betting-shop machines from 20% to 40%. Other rates under discussion include an increase in the lower rate from 5% to 10% and the higher rate from 25% to 50%.
David told the government that doubling the standard rate could add approximately £100m to Entain’s annual retail operating costs.
The company has also pointed to research commissioned by the Betting and Gaming Council which estimates that a 40% rate could result in 1,470 betting-shop closures and 15,900 job losses across the sector. Those figures are industry-commissioned projections rather than government estimates.
Entain has framed its argument around Burnham’s stated focus on communities that have historically received less attention from central government. The operator says many betting shops have operated on local high streets for decades and provide employment in areas where alternative jobs can be limited.
The proposed tax increase has also received backing from gambling-reform advocates, including former Prime Minister Gordon Brown. The Financial Times reported that additional revenue from a higher levy has been discussed as one possible source of funding for measures supporting households with energy costs.
Entain faces another round of cost reductions
The latest potential redundancies follow approximately 500 job cuts announced by Entain in July, mainly affecting corporate, product and technology operations.
The company is therefore heading towards another workforce reduction only months after the previous restructuring, while also dealing with major changes to Britain’s gambling-tax framework.
Remote Gaming Duty increased from 21% to 40% on 1 April 2026, while General Betting Duty is scheduled to rise from 15% to 25% in April 2027. Retail betting was not directly covered by the Remote Gaming Duty increase, but major operators have continued to review the economics of their shop networks.
Entain, William Hill, Paddy Power and Betfred have all announced retail closures, although other bookmakers, including BOYLE Sports and Jennings Bet, have continued expanding selected locations.
Entain maintains that another major tax increase would further weaken the economics of physical betting shops. Its intervention comes as the government weighs revenue-raising measures before a difficult Budget, with higher inflation and borrowing costs placing additional pressure on the UK’s public finances.
For Entain, the immediate objective is to persuade ministers to consider employment and high-street effects before making any final decision on Machine Games Duty. The government has not yet confirmed that the proposed increases will be adopted.