Entain CEO warns UK gambling tax rise could lead to betting shop closures
Stella David has warned that Entain could have to consider closing Ladbrokes and Coral shops.
UK.- Stella David, the CEO of London-listed Entain, has warned that increases to betting taxes could pose a serious threat to Britain’s retail betting sector. In her first major media interview since becoming permanent CEO in April, she told The Times that Entain could have to consider closing shops “depending on the level of where the increases were.”
David acknowledged the industry’s reputation challenges, but reiterated the regular warning that excessive regulation and taxation could drive consumers toward unlicensed operators. “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,” she said.
David warned that this could also have an impact on player safety. She said licensed retail betting venues have inherant safeguards such face-to-face interaction and limited operating hours.
Entain’s brands include Ladbrokes and Coral, which account for around 2,300 betting shops between them.
The government has stressed that it has not made any proposal to increase the tax rate on any gambling verticals. However, earlier in the year the Treasury opened a consultation on a proposal to merge the three three existing online gambling duties: remote gaming duty (currently 21 per cent), pool betting duty (15 per cent), and general betting duty (15 per cent) into a new Remote Betting and Gaming Duty. This proposal has sparked strong criticism, particularly from the horse racing industry.
Meanwhile, the Liberal Democrats and over 100 Labour MPs have called on chancellor Rachel Reeves to increase remote gaming duty for online casinos from 21 to 50 per cent, slot machines games duty from 20 to 50 per cent and general betting duty on non-racing bets from 15 to 25 per cent. Former Labour prime minister Gordon Brown has also backed the proposal, which the Institute for Public Policy Research (IPPR) estimates that this could raise £3.2bn and allow the government to eliminate the current two-child benefit cap.
Reeves herself has hinted that she may be swayed by their arguments. In an interview with ITV a week ago she said she believed “there’s a case for gambling firms paying more.”
The issue has led to a rift between the gambling sector and horse racing industry. In September, the British Horseracing Authority (BHA) held a day of strike action in protest against the plans for a unified tax rate, a move that drew sharp criticism from the Betting and Gaming Council (BGC). Some in the gambling sector accused the horseracing industry of negotiating to support plans for a higher tax rate on other verticals in exchange for exemptions for racing.
Betting shops remain a common fixture on UK high streets, with 5,931 currently operating, according to Statista. However, this is a notable decline. Between the start of the Covid-19 pandemic in March 2020 and November 2022, the number of high-street betting ships fell by over 19 per cent to 6,219, according to data from the Gambling Commission. More people now bet online than in person (38 vs 29 per cent), and that includes figures from lottery sales.
For the first quarter of the 2025/26 fiscal year, retail betting gross gambling yield (GGY) was down 5 per cent to £552m, while online GGY rose 2 per cent to £1.49bn.
Reeves will presents the UK government’s autumn budget on November 26.
