Entain Might Scale Down Its Presence in the UK as Tax Hike Debates Continue  

Entain’s chief executive officer, Stella David, has warned against raising the United Kingdom’s gaming taxes, as it could lead to the shutdown of gambling shops, depriving communities of jobs.

Entain Might Reconsider Its Investment Level in the UK

Speaking to The Times, David commented on the UK’s mulled gambling tax hike, saying that the passing of such a measure would likely cause Entain to reconsider its “investment level” in the country. She added that shop closures are also highly likely. Entain’s CEO said that the scale of such a shutdown would depend on the size of the potential tax increase.

David emphasized that Entain, which operates some 2,300 betting shops, wants to run a profitable business. As a result, changes that hurt its profitability might force the company to switch its focus to other markets. This would also cause damage at a local level since Entain, which employs some 14,000 people in Great Britain, would have to reduce its workforce.

While David agreed that “everyone should pay their fair share,” she said that she believes that Entain already does.

Tax Hikes Would Benefit the Black Market

The Times inquired whether Entain would consider switching its primary listing to the US, like Flutter did previously. David responded that her team acknowledges the opportunities in the American market but that it cannot say whether it would change its listing for certain. She added that Entain will continue to consider the situation and what’s best for the company.

In any case, David believes that a tax hike would be a gift to the black market since it would impede the legal industry’s ability to compete. This would lead to a loss of revenue and, by extension, losses for the government as well.

Speaking to The Times, David explained:

Black market operators are there to take as much cash out of the UK as possible, with as little friction as possible. They can look very slick and very professional. The problem is none of the profits they make come back in tax to the UK government.

Stella David, CEO, Entain

David noted that the Netherlands, which recently increased its gambling taxes, has been experiencing a decline in regulated gaming revenue ever since.

The Debates Continue

In the meantime, lawmakers continue to debate whether to raise the UK’s gambling taxes. Chancellor Rachel Reeves has remained open to a variety of proposals, saying that she agrees that operators should pay a fair share of taxes.

One recent proposal urged an increase in the gambling taxes in order to generate extra funding for child benefits. Spearheaded by ex-chancellor Gordon Brown, this initiative hopes to lead to the revocation of the two-child benefit cap.

Reeves previously proposed aligning the UK’s gaming taxes – something that the horseracing sector has firmly rejected.