The UK's gambling industry is experiencing a significant backlash following proposed tax increases by the Labour party, with industry leaders warning of potential site closures and substantial job losses. Stella David, CEO of Entain, which owns Ladbrokes and Coral, stated that a proposed rise in remote gaming duty from 21% to 40% in April would have a "massive impact."
Entain, the company behind Mecca bingo halls and Grosvenor Casinos, indicated that further tax increases under a potential Andy Burnham regime could force many venues out of business. The proposals also include an increase in the levy on online sports betting from 15% to 25% in April. While Rachel Reeves, who proposed the initial hike, is no longer in a relevant position, Burnham has suggested a clampdown on rules for opening betting shops, drawing criticism for grouping them with vape shops and businesses linked to organized crime.
David highlighted that Entain's betting shops are "valued" by communities, noting a decline in their numbers, with Ladbrokes closing 45 shops in the Republic of Ireland and Northern Ireland this year. She estimated the financial impact of the remote gaming duty hike to be around £250 million for Entain, following the company's recent announcement of plans to cut 500 jobs.
Richard Harris, chief executive of the Rank Group, which operates Mecca and Grosvenor, echoed these concerns. He stated that tax proposals from "anti-gambling campaigners" cast a shadow over a regulated industry that contributes significantly to employment and hospitality. Harris pointed out that Rank paid over £225 million in taxes and duties last year and warned that tax increases on clubs with high supervision and tight margins would lead to lower tax receipts as bingo halls and casinos are forced to close, affecting local communities.
William Hill's owner, Evoke, has already closed more than a fifth of its betting shops, citing tax pressures. Data from the Betting and Gaming Council indicates that over 540 betting shops have closed, resulting in the loss of 4,500 jobs, since changes were implemented in last year's budget.