The chief executive of Entain, the FTSE 100 owner of Ladbrokes and Coral, has warned the government that higher gambling taxes in next month’s Budget could lead to widespread betting shop closures and a sharp reduction in UK investment.
In her first interview since taking the role permanently in April, Stella David said any increase in gambling duties would compel Entain “to consider its investment level in the UK”. She added there was “no doubt” that higher taxes would trigger “shop closures” across its 2,300 high street outlets.
“At the end of the day we want to make a profitable global business,” David said. “If the UK becomes uncompetitive, there are other markets we can pivot to. Every point of tax increase has a consequence — certain shops become unviable, and the scale depends on how far it goes.”
The warning comes amid growing expectations that Chancellor Rachel Reeves will raise gambling taxes in her November Budget, following calls from former prime minister Gordon Brown to use the proceeds to help fund the removal of the two-child benefit cap.
Proposals under consideration include raising the remote gambling duty on online betting from 21% to 50%, increasing slot and gaming machine duties from 20% to 50%, and lifting general betting duty on non-racing bets from 15% to 25%.
A report by the Institute for Public Policy Research estimated these measures could raise around £3.2 billion annually for the Treasury.
At the Labour Party Conference last week, Reeves said there was “a case for gambling firms paying more,” adding: “They make an important contribution to the economy but should pay their fair share of taxes — and we’ll make sure that happens.”
Entain says it already ranks among UK’s top taxpayers
David insisted that Entain already makes a “fair contribution,” highlighting that the company is among the UK’s top 20 taxpayers, contributing £513 million to the Exchequer last year.
Across the wider gambling sector, operators pay about £4 billion in tax annually, according to the Betting and Gaming Council. The industry also contributes £350 million to British horse racing, £40 million to English football, and over £12.5 million to sports including snooker, darts, and rugby league.
‘Black market will be the biggest winner’ of tax rises
David warned that any sharp increase in duties would hand a competitive advantage to unregulated black-market operators, arguing that customers are often unaware they are betting on illegal sites.
“The biggest winner by far would be the black market,” she said. “These operators are there to take as much cash out of the UK as possible, with as little friction as possible. They look slick and professional — but none of the profits they make come back to the UK in tax.”
She cited the example of the Netherlands, where an increase in gambling taxes from 30.5% to 34.2% earlier this year coincided with a fall in both online and retail gaming revenues, according to the national regulator KSA.
Asked whether Entain could follow Flutter, the Paddy Power and Betfair parent that shifted its primary listing to the United States, David said it was “not on the table right now” but would be considered “if it was in the best interests of the company”.
“There are opportunities in the US,” she said. “If the situation changed here, we would have to consider them.”
Anna Hargrave, chief executive of GambleAware, said the debate over gambling taxes highlights a broader public health issue. “It’s for the government to decide on any potential gambling tax,” she said, “but we welcome the focus this is bringing to the issue, as gambling harm affects millions of people every year.”
With the Treasury eyeing new revenue sources and the gambling industry warning of job losses and capital flight, Reeves faces a delicate balancing act in November’s Budget.
For now, Entain — employing more than 14,000 people in the UK — is signalling that any sharp fiscal change could reshape its footprint on Britain’s high streets, just as Labour seeks to prove it can be both pro-growth and fiscally responsible.
