Ladbrokes and Coral owners launch campaign against betting shop tax rise – Entain, the parent company of Ladbrokes and Coral, has launched a campaign to warn against the negative economic impact of a rumoured increase in betting shop taxes, stating that such a move would force shop closures.
What Happened
Entain, the owners of prominent betting operators Ladbrokes and Coral, have launched a campaign titled ‘What’s at Stake’ to raise awareness about the detrimental effects a rise in betting shop taxes would have on the British economy. This initiative comes in response to reports suggesting a potential doubling of Machine Games Duty from 20% to 40% in the upcoming Autumn budget at the end of October.
Stella David, CEO of Entain, has written to UK Prime Minister Andy Burnham to express her concerns, particularly in light of his recent statement regarding betting shops occupying essential retail space that “people are crying out for.” Entain’s campaign highlights that betting shops are a vital part of the UK infrastructure, providing local jobs and serving communities.
Key Details
- Entain, owners of Ladbrokes and Coral, have started the ‘What’s at Stake’ campaign.
- The campaign protests against a rumoured increase in betting shop taxes, specifically a potential doubling of Machine Games Duty from 20% to 40%.
- Stella David, Entain CEO, has written to Prime Minister Andy Burnham, referencing his comments on betting shops occupying high street space.
- The campaign argues that shop closures would lead to fewer local jobs, less high street activity, reduced funding for British racing, and could push customers towards unregulated operators.
- Entain is lobbying for a “balanced approach” that protects customers and acknowledges the wider impact of tax increases on jobs, high streets, racing, and tax revenues.
- This follows a similar ‘Back Our Betting Shops’ campaign by the Betting and Gaming Council and recent closures, including Betfred shutting 132 shops in July.
- Previous tax increases include the iGaming tax rate rising from 21% to 40% in April 2023, and the sports betting tax rate is set to increase from 15% to 25% in 2027.
Why It Matters
This campaign by Entain underscores a significant conflict between the government’s potential fiscal policies and the gambling industry’s economic impact. A substantial increase in betting shop taxes could lead to widespread closures, resulting in job losses, diminished high street vitality, and a reduction in funding for the British racing industry, which heavily relies on betting revenue. Furthermore, the industry warns that closures could inadvertently push customers towards unregulated offshore gambling markets, posing greater risks to consumer protection and safer gambling practices. Entain’s call for a “balanced approach” highlights the complex interplay between taxation, economic stability, and responsible gambling regulation, urging the government to consider the broader consequences beyond immediate revenue generation.