Entain warns UK prime minister that doubling Machine Games Duty could add £100 million a year in retail costs

Entain has written to Prime Minister Andy Burnham ahead of the Autumn Budget in October, warning that a proposed rise in Machine Games Duty (MGD) from the current rate to 40% could force shop closures, cut jobs, and push more betting activity into the black market. For any PSP or acquiring team exposed to UK gambling retail, the message is simple: tax changes at this level don’t stay on the operator’s P&L.

1. Entain CEO Stella David said doubling MGD to 40% could add £100 million in annual retail operating costs, on top of April’s rise in Remote Gaming Duty (RGD) to 40% of GGR (gross gaming revenue). In the letter, she warned that the combined pressure could turn a tax change into a structural squeeze on retail economics rather than a one-off margin hit.
2. According to figures commissioned via the Betting and Gaming Council and EY, the increase could lead to as many as 1,470 shop closures and the loss of up to 15,900 jobs. Entain also said it is consulting internally and restructuring operations, with as many as 400 customer care roles potentially cut from its UK team.
3. David argued that the effect would fall heavily on high street workers and local communities. She said half of Entain’s retail employees are women, more than 50% work flexible or part-time hours, and more than 2,500 employees are under 25 years old. In other words, this is not just a pricing issue for the operator; it is a footprint issue for the retail network.
4. Entain also warned that higher MGD could drive customers out of the regulated market. The company estimated that up to £1 billion in gambling stakes could move to the black market, while pointing to Office for Budget Responsibility analysis that previous gambling tax increases had already reduced expected tax receipts, including a £500 million reduction in forecast receipts for 2029-30.
5. The company said machine gaming revenue helps keep shops viable outside race days and supports local economic activity, including around £50 million annually for British horse racing. Entain’s wider point is that the tax base is already tied to a fragile retail model: if the model breaks, the state may collect less, not more.

The proposed rise was first reported by The Financial Times, which said Chancellor John Healey is considering the move on the recommendation of the Social Market Foundation. Prime Minister Andy Burnham has already said the government intends to scrap “aim to permit” for betting shops and that AGCs will now need planning permission to operate.