Entain CEO Warns Machine Games Duty Increase Could Threaten 2,300 Betting Shops

Entain CEO Stella David has written to the UK Prime Minister warning that a proposed increase in Machine Games Duty (MGD) could lead to betting shop closures, job losses and reduced funding for British horseracing.

David said doubling the standard MGD rate from its current 20% to 40% would add approximately £100 million to the annual cost of operating Entain’s UK retail business.

The Ladbrokes and Coral owner operates around 2,300 betting shops in Britain and employs more than 12,000 people across its retail estate.

Writing ahead of the Autumn Budget, David urged the government to consider the wider consequences of increasing the tax on gaming machines before making a decision.

Entain Warns Of Betting Shop Closures

David cited modelling commissioned by the Betting and Gaming Council (BGC) from EY, which estimates that a 40% standard MGD rate could result in as many as 1,470 betting shop closures and 15,900 job losses across the wider industry.

The modelling also projects a potential £120 million net loss to the Exchequer, although these figures are industry-commissioned forecasts rather than government estimates.

Entain highlighted the composition of its own retail workforce, saying half of its betting shop employees are women, 52% work part-time or flexible hours and 2,570 are under the age of 25. The company said it has recruited 1,920 young people since 2024.

David argued that machine revenue plays an important role in supporting the economics of betting shops between sporting fixtures and races.

She also warned that increasing MGD could shift gambling away from licensed premises. EY's modelling estimates that, in its most severe scenario, approximately £1 billion in stakes could leave the regulated retail sector following an increase to 40%.

Horseracing Funding Among Entain’s Concerns

The Entain chief also focused on the potential consequences for British racing.

Entain estimates that its retail estate contributes approximately £50 million annually to horseracing through mechanisms including media rights and the Horserace Betting Levy.

David argued that widespread shop closures would reduce those payments while also affecting sponsorship and other commercial investment in racing.

Entain also owns three greyhound stadia, meaning David said a contraction of its retail operation could have consequences for greyhound racing as well as horseracing.

“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 wrote.

She has invited the Prime Minister to visit Entain betting shops and meet employees before the Autumn Budget.

Further Tax Increase Would Follow Remote Gaming Duty Rise

The intervention comes after significant changes to UK gambling taxation were announced in the 2025 Budget.

Remote Gaming Duty increased from 21% to 40% in April 2026, while a new 25% General Betting Duty rate for most remote betting is scheduled to take effect from April 2027. Remote bets on UK horseracing will remain at 15%.

The standard MGD rate currently remains at 20%, with no increase to 40% enacted at this stage.

David argued that doubling the rate would place another substantial cost on land-based operators already absorbing the effects of the wider tax changes.

Entain employs more than 13,000 people across its UK operations, with the majority working within Ladbrokes and Coral shops. The company is now calling for the government to assess the potential impact on employment, high streets and racing funding before deciding whether to increase MGD in the Autumn Budget.