Entain, the owner of betting operators Ladbrokes and Coral, has launched a campaign to raise awareness of the damage a rise in taxes on betting shops would cause to the British economy.
Reports of a further increase in betting shop taxes in the upcoming Autumn budget have been met with disdain from the chief executive officer of Entain. The news has prompted Entain to create a What’s at Stake campaign to challenge any potential upcoming tax rises. Reports suggest that Machine Games Duty may be doubled from 20 per cent to 40% in the budget at the end of October.
CEO's letter to Prime Minister
Stella David, CEO of the betting behemoth, which also owns a 50% stake in BetMGM, has written to UK Prime Minister Andy Burnham expressing her concern at his recent statement about betting shops taking up essential retail space on the high street that “people are crying out for”.
The campaign documents the view that betting shops are a vital part of the UK infrastructure and economy, providing local jobs and serving the community in various ways.
Industry-wide response
Entain and David’s efforts come in the wake of the Betting and Gaming Council launching a challenge of its own in the form of a Back Our Betting Shops campaign. This follows widespread closure of betting shops across the UK in recent years, with Betfred announcing it was shutting 132 shops in July.
A statement from Entain’s campaign reads: “Shop closures would affect far more than the businesses themselves. They would mean fewer local jobs, less activity on the high street, reduced funding for British racing and fewer places where customers can interact face-to-face with trained staff. “Some customers may choose to bet elsewhere, including with operators outside the UK's regulatory system.”
Call for balanced approach
Entain is lobbying for a “balanced approach” where customers are protected from the illegal gambling market, informed on safer gambling practices, and can recognise “the difference between staffed betting shops and other gambling products within the tax and regulatory framework.” The Entain CEO is also calling for the government to acknowledge the “wider impact” on jobs and high streets along with racing and tax revenues before potentially introducing further increases in retail betting shop taxes. The UK’s iGaming tax rate applied to casino sites already increased from 21% to 40% in April this year, while the tax rate for sports betting sites is due to rise from 15% to 25% in 2027.
