Entain has initiated a campaign to contest a potential rise in taxes for British betting shops. Reports indicate that the Machine Games Duty could see an increase from 20% to 40% in the UK government's Autumn budget, set to be revealed at the end of October.
The company, which owns popular brands like Ladbrokes and Coral and has a 50% stake in BetMGM, has launched its 'What's at Stake' campaign. This initiative aims to highlight the possible economic repercussions of elevated retail betting taxes, focusing on employment, high street vitality, British horse racing, and government tax revenues.
This campaign emerges amid a trend of betting shop closures across the UK, with Betfred recently announcing the closure of 132 shops in July.
The Betting and Gaming Council has also responded by launching its own 'Back Our Betting Shops' campaign, addressing the challenges faced by the retail betting industry.
In a statement regarding the campaign, Entain emphasized that shop closures would have far-reaching effects beyond just the businesses themselves. It would lead to fewer local jobs, diminished high street activity, reduced funding for British racing, and fewer venues for customers to engage face-to-face with trained staff.
Furthermore, the statement cautioned that some customers might opt to place bets with operators outside the UK’s regulatory framework.
Entain's CEO, Stella David, has reached out to UK Prime Minister Andy Burnham following his recent remarks about betting shops occupying essential retail space that is in high demand.
David has voiced her apprehensions regarding the likelihood of further tax increases on betting shops and urged the government to consider the broader implications on jobs, high streets, racing, and tax revenues before implementing any changes to the retail betting tax structure.
The company advocates for a 'balanced approach' that safeguards customers from illegal gambling, promotes awareness of safer gambling practices, and helps consumers distinguish between staffed betting shops and other gambling options within the tax and regulatory framework.
Any potential rise in retail betting taxes would follow recent tax adjustments affecting online gambling. Earlier this year, the UK's iGaming tax rate for casino sites increased from 21% to 40%, while the tax rate for online sports betting is scheduled to rise from 15% to 25% by 2027.