Entain’s CEO, Stella David, has issued a stark warning about the impact that rising gambling taxes could have on the company’s UK operations. In her first interview since being appointed permanent CEO in April, David stated that increased gambling duties would compel the FTSE 100 company, owner of Ladbrokes, Coral, and several other gaming brands, to reconsider its level of investment in the UK. She also acknowledged that the company would be forced to close some of its 2,300 betting shops across the country.

David explained that the company is focused on becoming a profitable global business, and if the UK becomes uncompetitive due to higher taxes, Entain would have no choice but to shift its resources to other markets. “There is no doubt that we will need to review shop closures depending on the scale of the tax increase,” David said. “Every point of tax increase has consequences. Certain shops will become unviable, and it all depends on how far the tax hikes go.”

Higher Gambling Taxes: A Growing Concern

David’s warning comes at a time when Rachel Reeves, the Chancellor of the Exchequer, is expected to introduce new gambling taxes in the upcoming November budget. This follows calls from former Prime Minister Gordon Brown, who has suggested that higher taxes on the gambling sector could help fund the removal of the controversial two-child benefit cap.

Among the proposed measures is a significant increase in remote gambling duties, with rates rising from 21% to 50% for online betting companies, and similar hikes for slot machines and non-racing bets. According to a report by the Institute for Public Policy Research, these tax increases could generate up to £3.2 billion for the UK Treasury.

At the Labour Party conference, Reeves indicated she was open to raising gambling taxes, telling reporters that while gambling companies make a significant contribution to the economy, they should “pay their fair share.”

Entain is already one of the UK’s top 20 taxpayers, contributing £513 million to the Treasury last year. Across the entire gambling sector, the industry collectively pays around £4 billion in taxes annually. Additionally, it contributes £350 million to the horse racing industry, £40 million to English football, and more than £12.5 million to snooker, darts, and rugby leagues.

David stressed that Entain is fully committed to paying its fair share but argued that a disproportionate tax hike would not only hurt companies like Entain but also benefit black-market operators. “The biggest winner by far would be the black market,” she said. “They can appear slick and professional, but none of the money they make is taxed in the UK, and there’s no player protection or rules in place.”

David pointed to the Netherlands as a cautionary example, where gambling taxes increased from 30.5% to 34.2% in January 2025. According to the national gambling regulator, tax revenues fell in the first half of the year, reflecting a drop in gross gaming revenues across both online and land-based markets.

Looking Beyond the UK: A Potential US Move?

David was also asked whether Entain might follow in the footsteps of Flutter Entertainment, the owner of Paddy Power and Betfair, which moved its primary listing to the United States. While David confirmed that Entain has opportunities in the US, she made it clear that such a move is not currently planned. However, she didn’t rule it out, saying, “If the situation changed, we would have to consider it.”

Entain’s primary focus, for now, remains on its operations in the UK and other regulated markets, as the company navigates the uncertainty surrounding the potential tax hikes. “There are always opportunities in the US,” she concluded, “but the priority right now is ensuring we can remain competitive here in the UK.”

While the debate about gambling taxes continues, Anna Hargrave, CEO of GambleAware, emphasized that the discussion also highlights the broader issue of gambling harm, which affects millions of people each year. “It’s for the government to decide on any potential gambling tax,” Hargrave said, as The Times reports, “but we welcome the focus this debate is bringing to the issue as gambling harm is a serious public health issue.”

With the government and industry at odds over tax proposals, it remains to be seen how Chancellor Reeves will balance fiscal responsibility with the long-term viability of the gambling sector. For now, Entain is preparing for what could be significant changes to its UK footprint, depending on the scale of the tax increases in November’s budget.