Entain CEO Underlines UK Betting Tax Issues For Young Workers

Entain CEO Stella David has tried to heap further pressure on the UK government to abandon its plans to raise betting taxes. The upcoming Budget has created discomfort in the betting industry, with the Chancellor, John Healey, expected to double the Machine Games Duty (MGD) to 40% of net takings on Category B machines.

Having already tabled 400 job cuts as part of its cost-efficiency initiative, Entain, the Ladbrokes and Coral owner, is exploring ways to streamline its operations. And David has implored Healey to think about the ramifications that tax hikes would have on young people.

Entain refusing to back off

Over the past few weeks, Entain has been resolute in opposing potential tax rises, and it has championed the cause. A campaign entitled ‘What’s at Stake’ was launched to shine the spotlight on a struggling retail industry where redundancies and shop closures are fast becoming a reality.

Indeed, Entain used the campaign to point out how the introduction of draconian taxes is supposedly “uneconomic” and threatens the future of Britain’s high streets.

Moreover, recent modelling provided by accountancy firm Ernst & Young (EY) indicated a significant hike in gambling taxes could put 16,000 retail betting jobs and nearly 1,500 shops at risk.

Moreover, Entain’s efforts to be heard have come off the back of the Betting and Gaming Council (BGC) releasing its own campaign, ‘Back Our Betting Shops’.

Within that campaign, market research firm Opinium polled the thoughts of those in the Makerfield region where 54% of respondents said that betting shops contribute to community life, and job losses remain the biggest concern if bookies disappear from the high street.

Putting the younger generation first

Entain has actively given younger people a chance. The company employs more than 2,500 Under-25s, and recruits about 650 young people a year. In terms of the broader picture, nearly a million people in the UK aren’t in formal education, employment, or training.

Roughly half of Entain’s operational managers joined the company between the ages of 18 and 24. However, in an op-ed piece for The Sun, David is concerned that the younger generation could be lost if the government imposes steep betting tax rises.

She wrote:

“When a shop closes it doesn’t just mean the loss of a business. It means the loss of jobs, training opportunities and career pathways for local people. You cannot demand businesses create opportunities for young people while simultaneously making it harder for them to stay open.

“Every politician says they want fewer young people left on the sidelines. The businesses creating those opportunities deserve backing, not punishing.”

Further pressure heaped

This isn’t the first time that David has stressed her case to the government. Last month, she wrote a strongly-worded letter to the Prime Minister, Andy Burnham, to clarify the untold ramifications the tax rises would have on the industry.

Within that, she noted that brick-and-mortar locations contribute £50 million a year to horseracing, and the proposed plans would have a negative effect on the sport.

The tax burdens placed on betting companies have been significant. In April, remote gaming duty (RGD) shot up from 21% of gross gambling yield (GGY) to 40%, and in April next year, the general betting duty paid on online sports bets will climb from 15% to 25% of GGY, with racing exempt.

Bookies are bracing themselves for further changes to the gambling landscape. And Entain is hoping that its message can pierce through.