Speaking to The Times, David cautioned that upcoming tax hikes expected in next month’s budget could make many of Entain’s 2,300 high street betting shops financially unviable. The company, which employs more than 14,000 people in the UK, may be forced to divert investment away from the country if the proposed increases are approved.
David explained that “every point of tax increase” would impact profitability and could accelerate shop closures. Industry analysts estimate that the new measures including raising remote gambling duties from 21% to 50% and slot machine taxes from 20% to 50% could generate an additional £3.2 billion in revenue.
However, both Entain and industry bodies warn that higher taxation could backfire by pushing consumers toward unregulated offshore markets, thereby reducing total tax income and undermining player safety. David referenced the Netherlands’ recent experience, where a modest tax increase led to a decline in gambling-related revenue.
Despite a 21% rise in online revenue and a 9% increase in total UK & Ireland net gaming revenue this year, Entain’s retail segment continues to decline. The company’s omni-channel strategy has helped stabilize its business, but rising fiscal pressure could reverse these gains.
While Entain has no current plans to relocate its primary listing, David stated the firm would “reconsider its investment level in the UK” if taxes continue to rise, signaling potential shifts in future strategy.
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