Entain Intensifies UK Retail Betting Calls Ahead Of Autumn Budget

Entain has intensified its efforts to spread the message about the UK retail betting sector by launching its own campaign. The campaign, known as ‘What’s at Stake’, intends to shine a light on the embattled retail industry where jobs and shops are at risk amid suggestions that draconian betting taxes could be introduced.

The Coral and Ladbrokes owner is adamant that a “disproportionate” increase in taxes could make shops more “uneconomic”. Through a series of films and personal stories, Entain has tried to explain how the retail sector could be decimated if things go against them.

Following in the BGC’s trail

Entain is under no illusions about the importance of betting shops to local communities. Intriguingly, the launch of ‘What’s at Stake’ came on the back of the betting trade body, the Betting and Gaming Council (BGC), unveiling its own campaign, ‘Back Our Betting Shops’.

In their campaign, BGC wanted to put shops and jobs at the forefront of the debate. The CEO, Grainne Hurst, wanted to draw attention to the importance of the matter and ensure retail betting employees aren’t ignored.

She said:

“Further tax rises would not just show up on a balance sheet. They could mean people losing their livelihoods, more empty shopfronts and more communities losing businesses they value.

“That is why we are asking Britain to Back Our Betting Shops. This campaign is about telling the stories behind the statistics and making sure the voices of the people whose jobs and communities are at stake are heard.”

Entain not backing down

So far, Entain has been unyielding in its calls, and it isn’t prepared to back down. The company recently announced it would be scrapping 400 jobs across its 2,000-strong customer care division, as it seeks to mitigate the impact of tax rises. Earlier this summer, Entain embarked on a cost-cutting drive, cutting 500 roles across the business, equating to 2% of its workforce.

But they aren’t alone. Bet365 announced that it was culling 340 jobs across Europe, while Paddy Power suggested that 100 shops were under review, which could lead to 400 redundancies made.

Amid talk of a wave of job cuts, Entain’s CEO, Stella David, wrote a 1,300-word open letter to the Prime Minister, Andy Burnham, explaining the ramifications that would be caused if the government goes ahead with its planned tax proposals.

Although David insisted Entain shouldn’t be “insulated” from tax rises, she said they should be recognised for being one of the UK’s top taxpayers.

MGD creating tax burden

Discourse over a rise in the Machine Games Duty (MGD) rate is reaching feverish levels. The UK Chancellor, John Healey, is widely expected to bump the rate up to 40% of net takings on Category B machines.

More worryingly, in modelling carried out by accountancy firm Ernst & Young (EY), a significant hike could put 16,000 retail betting jobs and nearly 1,500 jobs at risk.

The measures, naturally, would represent another body blow to bookies. In April, remote gaming duty paid on online casino bets surged from 21% to 40% of gross gambling yield (GGY). And in April next year, the general betting duty paid on online sports bets will rise from 15% to 25% of gross gambling yield (GGY), with horseracing exempt.

Through its campaign, Entain is calling for a more balanced approach to taxation. With the budget looming, Entain doesn’t have much time to convince the government to change tack.