The boss of Entain, the owner of UK betting giants Ladbrokes and Coral, has sent out a bleak warning to the chancellor ahead of November’s budget, when it is expected that a raise in gambling taxes will be introduced.
Stella David, CEO of the brand operator, has said that any tax hike would force the company “to consider its investment level in the UK”, which could lead to closures of some of its estate of 2,300 retail outlets.
In an interview with The Times, David said: “At the end of the day we want to make a profitable global business.
“There are other markets we have to pivot to as being more worthy of investment.
“There will be consequences.
“Having a dislocating increase in tax will have a dislocating impact on the industry.”
What Are The Proposed Gambling Tax Increases?
Rachel Reeves, the Chancellor of the Exchequer, is due to announce her latest budget on November 26, 2025.
The Labour government has been looking at a proposal to raise taxes on the gambling industry to help fund measures designed to tackle child poverty in the UK.
Revenue raised would provide the extra finance the government would need if the two-child benefit cap was removed, with former prime minister Gordon Brown being one of the scheme’s most vocal advocates.
The proposal would see an increase in tax on online slots from 21% to 50% and retail slots and gaming machines would take a similar hit, with tax jumping from present split levels of 20% and 25% to 50%.
There would also be a 10% rise in the general betting duty levied on bookmakers, pushing it up from 15% to 25% on non-horse racing bets.
The Institute for Public Policy Research has estimated these measures would raise in the region of £3.2 billion.
That figure is based on the present standing of the UK gambling industry, but the fallout from tax rises could have a punishing affect on betting businesses.
David has warned that closures of high street bookies could not be ruled out.
“Every point of [tax] increase would actually have an impact that certain shops would become unviable,” said David.
“There is no level that does not have some consequence, the scale depends on how far it goes.”
Revenue Could Be Lost To Offshore Betting
There is a further danger that the closure of traditional outlets could see bettors turning to non-regulated services online.
David, who was appointed Entain CEO in April, said: “I don’t expect anyone on the street to feel sorry for us at all, that’s not their job.
“But a normal person on the street who likes to have a bet can’t tell the difference between a black-market site and a regulated site.
“Black market operators are there to take as much cash out of the UK as possible, with as little friction as possible.
“They can look very slick and very professional. The problem is none of the profits they make come back in tax to the UK government.”
Sports betting and gaming group Entain is among the top 20 taxpayers in the UK and last year contributed £513million to the Treasury coffers.
