Entain, the FTSE 100 owner of Ladbrokes and Coral, is planning to cut up to 400 customer care roles from its 2,000-strong UK workforce.
The operator’s CEO Stella David has written directly to Prime Minister Andy Burnham, warning that proposed increases to Machine Games Duty rates could devastate Britain’s betting shops.
Entain operates over 2,300 betting shops across the UK, making it one of the largest retail betting employers in the country.
David’s letter specifically invokes Burnham’s own “Makerfield Test,” a national policy principle designed to deliver for communities historically overlooked by Westminster governments.
The Makerfield Test takes its name from the Greater Manchester constituency Burnham represents as an MP, signalling David’s deliberate appeal to his political identity.
“A substantial increase in MGD would therefore bear directly on many of the people and places the Makerfield Test is intended to support,” David wrote in the letter.
She further urged the government to think beyond headline tax figures, writing: “I hope that, before any decision is taken on MGD, the government will look beyond the headline tax rate and consider the real-world consequences for the people whose livelihoods depend on these businesses and the communities in which they operate.”
David warned that doubling the standard MGD rate to 40% would add around £100 million to Entain’s annual cost of running its UK retail betting and gaming business.
Independent modelling from EY, commissioned by the Betting and Gaming Council, suggests a 40% MGD rate could trigger up to 1,470 betting shop closures, 15,900 job losses, and a net loss to the Exchequer of around £120 million.
The broader context for this battle stretches back to early 2025, when then-Chancellor Rachael Reeves began exploring higher taxes on online gambling under then-Prime Minister Keir Starmer.
Despite heavy lobbying from the betting industry and horse racing sector, Reeves pushed ahead, raising Remote Gaming Duty from 21% to 40% from 1 April 2026 and General Betting Duty from 15% to 25% from April 2027.
The impact on Entain has already been significant, with the company’s stock falling sharply enough to threaten its six-year membership of the FTSE 100.
While retail betting was initially exempt from the RGD increase, the knock-on financial pressure has still reached the high street, with Entain, William Hill, Paddy Power, and Betfred all announcing shop closures.
Some operators have moved in the opposite direction, with firms like BOYLE Sports and Jennings Bet continuing to open new shops despite the challenging environment.
Tax pressures aside, the growing adoption of artificial intelligence across the betting industry may also be contributing to headcount reductions, as automation increasingly reshapes team structures at tech-led operators.
Entain and its competitors across the UK industry are nonetheless expected to lobby hard against any further tax increases ahead of the Autumn Budget, due to be announced on 28 October 2026.
