Entain Considers Scaling Back UK Operations Amidst Gaming Tax Increase Discussions
Entain’s Caution Over Potential UK Gaming Tax Increases
Stella David, the CEO of Entain, has voiced concerns regarding the proposed hikes in gaming taxes in the United Kingdom. She warns that such increases could force the closure of numerous gambling shops, leading to significant community job losses.
Possible Reduction in Entain’s UK Investment
In an interview with The Times, David discussed the ongoing debate about raising gambling taxes and indicated that passing such legislation might prompt Entain to reevaluate its investment intensity in the UK market. She highlighted that potential tax hikes could result in the closure of a substantial number of betting outlets, depending on the extent of the tax increase.
Entain currently operates about 2,300 betting shops across Great Britain and employs roughly 14,000 individuals. David pointed out that the company’s goal is to maintain profitability, and any tax changes jeopardizing this could push Entain to shift its focus toward other international markets. Such a move would also negatively impact local employment levels.
While acknowledging that all entities should contribute fairly in taxes, David expressed her view that Entain already meets its obligations in this regard.
Rising Taxes Could Strengthen the Illegal Gambling Sector
When asked about the possibility of moving Entain’s primary stock listing abroad, such as to the United States, where some competitors have done so, David mentioned that while the company is aware of opportunities in the US market, no definitive decisions have been made. Entain continues to evaluate the best course of action for its business.
David believes that increasing gaming taxes would inadvertently fuel the black market, as higher costs for regulated operators would diminish their competitive edge. This shift could reduce government revenues and hinder the growth of the legitimate gambling industry.
“Black market operators are focused on extracting as much money as possible from the UK market with minimal hurdles. They often appear professional and polished, but their profits do not contribute to UK tax revenues,” stated Stella David.
David also referenced the Netherlands as an example, where recent gambling tax increases have coincided with a decrease in revenue from regulated gaming.
The Ongoing Debate Over Gambling Taxation in the UK
Meanwhile, the discussion about increasing gaming taxes continues among UK lawmakers. Chancellor Rachel Reeves remains open to various proposals, emphasizing the importance of operators paying their fair share.
One recent initiative, championed by former chancellor Gordon Brown, advocates raising gambling taxes to fund enhanced child benefits and aims to remove the cap on benefits for families with more than two children.
Previously, Chancellor Reeves proposed harmonizing gaming taxes across sectors, a proposal that has met with stiff opposition from the horseracing industry.
