Entain Plans 400 Job Cuts as CEO Warns UK Prime Minister on Machine Games Duty Rise to 40%

Entain is cutting around 400 of its 2,000 Customer Care roles while CEO Stella David warns that proposals to raise Machine Games Duty to 40% would add £100 million a year to the company’s UK retail costs. Current rates sit between 5% and 25%. In a letter to Prime Minister Andy Burnham, David urged the government to look beyond the headline tax rate and consider the wider effects on betting shops, employment and investment.

David said the reductions, which affect teams in Customer Protection and Resolution, Risk and Payments, Service Delivery, Planning and Insight, and Business Operations, will ensure the business remains competitive, financially resilient and well-positioned for the future. The move marks the latest pressure on the UK’s retail betting sector. Flutter is reviewing up to 100 Paddy Power shop closures, putting about 400 jobs at risk. Evoke and Betfred earlier announced plans to shut 230 and 132 shops respectively.

EY Research Signals Broader Closures and Revenue Risk

David cited EY modelling commissioned by the Betting and Gaming Council. The research estimated that a 40% rate could lead to as many as 1,470 betting shop closures and 15,900 job losses across the UK. It projected a potential £120 million net loss to the Exchequer. The Social Market Foundation estimated that doubling duty on Category B machines could raise up to £458 million.

David warned that heavier taxation could push customers toward unlicensed operators. “The better outcome for communities and the public finances is to keep gambling within the regulated sector and, wherever possible, bring activity currently taking place illegally back into it,” she said. A further doubling of Machine Games Duty would add another significant cost to businesses already struggling to absorb major tax increases, stacking the odds against labour-intensive high-street operators and making it harder to sustain shops, jobs and investment in local communities. According to Casino.org, UK Chancellor John Healey is considering targeting any increase at betting shops and adult gaming centres.

The Policy Choice on Retail Sustainability

The cumulative announcements from Entain, Flutter, Evoke and Betfred show a sector already contracting under prior tax rises. Any decision on the 40% rate must account for the EY-projected net loss to public finances rather than gross revenue estimates alone.

Reporting: Casino.org News

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