Entain has written to Prime Minister Andy Burnham warning that a proposed doubling of Machine Games Duty to 40% would add £100m in annual operating costs to its retail business, force shop closures and trigger mass redundancies. Chief executive Stella David said the increase would push betting turnover into the black market and undermine the government's own Makerfield Test.
A study by the Betting and Gaming Council and EY estimates the MGD hike could close up to 1,470 Entain shops and eliminate up to 15,900 jobs. Half of the operator's retail staff are women, more than 50% work flexible or part-time hours, and over 2,500 employees are under 25. Entain projects the tax rise would shift £1bn in wagers to unlicensed channels. Citing Office for Budget Responsibility analysis, the operator noted that previous tax increases cut expected revenue — the 2029–30 forecast fell by £500m. A Regulus Partners and Helios report for Euromat found Europe's black market grew 18% annually from 2019 to 2026 and is on track to reach €13bn this year.
Machine revenue subsidises retail locations on non-racing days and contributes around £50m per year to British horseracing. Entain has requested meetings with officials before the budget is finalised.
Separately, the operator has begun consultation on cutting roughly 400 customer care roles from a 2,000-person UK team. Entain eliminated 500 positions globally earlier this year and closed a third of Ladbrokes shops in Ireland in April. Bet365 cut more than 300 staff last week in response to UK tax increases.
