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 Budobtain 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, Snotifya David declared 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 conclude of the day we want to build a profitable global business,” David declared. “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 depconcludes on how far it goes.”
The warning comes amid growing expectations that Chancellor Rachel Reeves will raise gambling taxes in her November Budobtain, following calls from former prime minister Gordon Brown to apply the proceeds to assist 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 declared there was “a case for gambling firms paying more,” adding: “They build an important contribution to the economy but should pay their fair share of taxes — and we’ll build sure that happens.”
Entain states it already ranks among UK’s top taxpayers
David insisted that Entain already builds 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 industest 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 hugegest 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 hugegest winner by far would be the black market,” she declared. “These operators are there to take as much cash out of the UK as possible, with as little friction as possible. They see slick and professional — but none of the profits they build 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 declared 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 declared. “If the situation modifyd here, we would have to consider them.”
Anna Hargrave, chief executive of GambleAware, declared the debate over gambling taxes highlights a broader public health issue. “It’s for the government to decide on any potential gambling tax,” she declared, “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 industest warning of job losses and capital flight, Reeves faces a delicate balancing act in November’s Budobtain.
For now, Entain — employing more than 14,000 people in the UK — is signalling that any sharp fiscal modify could reshape its footprint on Britain’s high streets, just as Labour seeks to prove it can be both pro-growth and fiscally responsible.
Jamie Young
Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industest conferences and workshops.
When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.
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