Entain CEO Stella David warns of shop closures as tax rise threat looms

• CEO Stella David says higher gambling taxes in November’s budget could force closure of betting shops across the company’s 2,300-outlet estate
• Chancellor Rachel Reeves expected to consider raising remote gambling duty from 21% to 50% and gaming machine duties from 20% to 50%
• Entain contributed £513m to the Treasury last year and employs more than 14,000 people in the UK

Entain CEO Stella David has warned that proposed gambling tax increases in Chancellor Rachel Reeves’ November budget could force the FTSE 100 company to close betting shops and reduce UK investment.

In her first interview since becoming permanent CEO in April, David told The Times that higher gambling duties would compel the Ladbrokes and Coral owner “to consider its investment level in the UK” and could trigger shop closures across its approximately 2,300 high street betting outlets.

Black market concerns

David cautioned that tax hikes could drive punters towards unregulated operators, undermining both government revenue and player protections. She pointed to the Netherlands as a warning example, where gambling tax revenue declined after rates increased from 30.5% to 34.2% in January, according to the country’s regulator KSA.

“At the end of the day we want to make a profitable global business,” David said. “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.”

The CEO explained that ordinary bettors often cannot distinguish between regulated operators and unlicensed sites, which could divert revenue away from the UK.

“Every point of [tax] increase would actually have an impact that certain shops would become unviable… there is no level that does not have some consequence, the scale depends on how far it goes,” she added.

“The biggest winner by far would be the black market. These operators are there to take as much cash out of the UK as possible, with as little friction as possible. They look slick and professional — but none of the profits they make come back to the UK in tax.”

Proposed tax changes

Chancellor Reeves is widely expected to consider increased gambling taxes in November’s budget, following calls from former Prime Minister Gordon Brown to help fund the removal of the two-child benefit cap. Plans under discussion include raising the remote gambling duty rate from 21% to 50%, increasing slot and gaming machine duties from 20% to 50%, and lifting the general betting duty on non-racing bets from 15% to 25%.

Analysts estimate these measures could generate £3.2bn for the Treasury. At the Labour Party conference, Reeves indicated openness to raising gambling taxes, stating that companies should “pay their fair share”.

Industry contribution

Entain currently employs more than 14,000 people in the UK and contributed £513m to the Treasury last year, making it one of the country’s top 20 taxpayers. The wider betting and gaming sector pays around £4bn annually in taxes, according to the Betting and Gaming Council.

The company’s UK business has recently begun recovering after turbulent years, with UK and Ireland online revenue growing 21% in the first half of 2025. Total net gaming revenue in the region rose 9%, although retail revenue continued declining by 2%.

David noted that while Entain has no immediate plans to follow rivals like Flutter by moving its primary listing abroad, the company would consider relocating if UK tax increases made overseas markets more attractive.