Entain appeals directly to Burnham as another round of job cuts tabled

Ladbrokes Coral owner Entain is set to cut up to 400 of its 2,000 customer care roles across the UK, attributing what it calls the “simplification” of this division to new tax burdens. The LSE-listed company has simultaneously stepped up lobbying efforts ahead of the Autumn Budget, hoping to avoid another increase in taxes as Chancellor of the Exchequer, John Healey, reportedly considers doubling Machine Games Duty (MGD). “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,” said Stella David, Entain’s Chief Executive Officer. In a letter to Prime Minister Andy Burnham, David argues that increasing the three different MGD rates would have a huge impact on Britain’s betting shops – of which Entain owns over 2,300 across the country. David has appealed to Burnham’s ‘Makerfield test’, a national policy principle based on delivering to areas perceived as being “overlooked” by the central government in Westminster for many years. The policy is named after the consistency Burnham represents as MP, Makerfield in Greater Manchester, north west England. “Many of those shops have been part of their local communities for decades, providing jobs, supporting local economies and offering familiar, staffed places where customers meet and interact,” David wrote. “We therefore wanted to make clear the impact that decisions taken in the upcoming Budget could have on thousands of people and communities if that test is not fully reflected in the outcome. “A substantial increase in MGD would therefore bear directly on many of the people and places the Makerfield Test is intended to support.” Entain talks tax … again The British betting industry has been inundated with conversations about tax for well over a year now. The conversation began in early-mid-2025 when Rachael Reeves, then Chancellor of the Exchequer under then-PM Keir Starmer, began mulling up increasing taxes on online gambling. Against extensive betting industry and horse racing lobbying, Reeves opted to increase Remote Gaming Duty (RGD) from 21% to 40% from 1 April 2026 and General Betting Duty from 15% to 25% from April 2027. The impact of the rise in RGD has already been clear to see in Entain’s latest financial results, and the operator is set to exit London’s prestigious FTSE 100 after a six-year stint there as its stock continues to fall. Although retail betting was exempt, it has also apparently felt the knock-on effect and Entain, William Hill, Paddy Power and Betfred have all announced shop closures, though firms like BOYLE Sports and Jennings Bet have continued to open new shops. The proposals around MGD – which have gained the support of prominent gambling reform campaigners like former PM Gordon Brown – would see the lower rates on retail gaming machines increase as follows: The lower rate would double from 5% to 10% The standard rate from 20% to 40%. The higher rate from 25% to 50%. Entain’s CEO claims that doubling the standard rate would add “around £100m” to the annual cost of running its retail businesses. The company has also cited Betting and Gaming Council (BGC) commissioned data suggesting that a 40% rate would lead to 1,470 shops closures and 15,900 job losses. “They are people losing their jobs and communities losing long-established high-street businesses,” she said. “These jobs matter. They matter particularly in communities where good local employment can be difficult to find.” Balancing tax and tech As well as closing shops, Entain has also already begun making job cuts. The firm cut 500 jobs back in July, largely in corporate areas and product and technology teams. As with the latest round of redundancies, taxes were cited. Tax may not be the only thing behind these job cuts, however. It is often noted that all betting companies are tech companies, and all tech companies are using AI a great deal, simplifying team structures and saving headcount costs. It may be that the tax burden has sped up a technological process that was at some point inevitable as automation continues to replace jobs in tech-led companies. This doesn’t change the fact that Entain, and its competitor across the UK industry, are going to lobby hard against any tax increase in the Autumn Budget, due to be announced on 28 October 2026. “I hope you will ensure their voices are heard before any decision is taken in the Autumn Budget, and that the outcome meets the Makerfield Test you have set for your government,” David’s letter to the Prime Minister concluded.