Entain CEO Stella David has suggested the multi-brand operator would have to close betting shops and focus investment on other markets if Labour follows through with its threat of tax increases.
The industry is likely to be hit with tax hikes when the government releases its Autumn Budget on 26 November, with Chancellor Rachel Reeves adding further fuel to the fire at the end of September when she said the sector needs to “pay their fair share” when it comes to taxes.
In an interview with The Times, David said: “At the end of the day we want to make a profitable global business. There are other markets we have to pivot to as being more worthy of investment. There will be consequences. Having a dislocating increase in tax will have a dislocating impact on the industry.”
On the company’s 2,300-strong retail betting estate, the CEO added: “Every point of [tax] increase would actually have an impact that certain shops would become unviable […] there is no level that does not have some consequence, the scale depends on how far it goes.”
The Treasury recently concluded a consultation into combining pool and general betting duty and remote gaming duty.
As it stands, general betting and pool betting is taxed at 15%, while remote gaming duty is at 21%. Think tank the Institute for Public Policy Research has recommended doubling betting duty to 30% and hiking online casino to 50%.
In the event that happened, the think tank has suggested £3.2bn could be raised, with former Prime Minister Gordon Brown arguing the money be used to combat child poverty.
However, that figure has been disputed by independent research firm Regulus Partners, who say tax increases could reduce tax yields and that the total collected would be closer to £2.1bn.
With the industry awaiting the outcome of next month’s Autumn Budget, David, who was named Entain’s permanent CEO in April following the departure of Gavin Isaacs, said the Ladbrokes and Coral parent company could emulate rival Flutter Entertainment and move its primary listing to the US.
Entain, which employs more than 14,000 people in the UK, has a significant foothold in the US and Ontario with Jersey City-headquartered BetMGM, the 50/50 joint venture with MGM Resorts International.
BetMGM, which has a 22% share of the igaming market in the US, reported a 36% year-on-year rise in net gaming revenue to $692m for the second quarter of 2025.
David said: “There are opportunities that exist in the US. I’m not saying we are planning to do it right now but of course we would consider it if the situation meant it was in the best interest of the company.”
The CEO also warned that the other benefactors from an increase in gambling taxes would be the black market.
She added: “I don’t expect anyone on the street to feel sorry for us at all, that’s not their job, but a normal person on the street who likes to have a bet can’t tell the difference between a black market site and a regulated site.
“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.”
Reeves has the backing of more than 100 Labour MPs who signed an open letter last month, urging the Chancellor to go ahead with the increase as a way to tackle child poverty.
Betting and Gaming Council (BGC) CEO Grainne Hurst has said that a tax increase in the UK would result in several detrimental implications, including pushing players to the black market, citing the Netherlands as cautionary tale.
The BGC argues that the sector already contributes £4bn a year to state coffers. Entain alone handed over £513m to the Treasury in tax in 2024.
The FTSE 100 operator’s share price has achieved positive gains of late, climbing 24% to £8.64 so far in 2025.
In August, CFO and deputy CEO Rob Wood told EGR that one of the firm’s heritage brands, Ladbrokes, was a “sleeping giant”.
The post Report: Entain would divert investment to other markets if UK hikes taxes first appeared on EGR Intel.
CEO Stella David warns in an interview with The Times that tax increases could push punters towards the black market, though Chancellor Rachel Reeves has insisted the industry needs to pay its “fair share”
The post Report: Entain would divert investment to other markets if UK hikes taxes first appeared on EGR Intel.