Entain Launches Consultations on Customer Service Positions Amid Machine Games Duty Concerns

Entain, the company behind Ladbrokes and Coral, has started consultations regarding approximately 400 customer service roles, with the majority based in the UK, as it responds to warnings about a possible rise in Machine Games Duty on slot machines that could reach £100 million in annual costs and put hundreds of betting shops at risk.

Observers note the timing aligns with ongoing government reviews of tax rates applied to physical gaming machines in betting shops and adult gaming centres, while the company points to independent modelling from EY on the impacts of a 40% MGD rate as part of its assessment process.

Details of the Consultation Process

Company representatives have outlined that the consultations focus on customer service functions, and they have communicated the potential scale of changes to affected teams through standard internal channels, yet the process remains in its early stages with no final decisions confirmed at this point. Those who have reviewed the announcement highlight how the measures tie directly to the financial pressures created by the proposed tax adjustment on Category B machines, which currently carry a 20% rate that the government is considering doubling.

Figures from the company indicate the higher rate could generate the £100 million annual impact, a sum that operators say would affect operations across multiple sites and lead to further reviews of shop viability in the coming months.

The Open Letter from Leadership

CEO Stella David sent an open letter to Prime Minister Andy Burnham that sets out the risks associated with increased taxation on physical slots, and this correspondence forms part of the company's public engagement on the issue, while it also references data on how such changes might influence employment levels and the broader retail betting network.

People familiar with the correspondence note that it draws attention to the role of betting shops in local communities and the employment they support, although the letter stops short of making specific predictions beyond the modelled cost figures already shared.

Context Around Machine Games Duty Changes

The government continues to evaluate options for adjusting the standard MGD rate on Category B machines from the existing 20% level, and industry participants have submitted various analyses that examine the potential outcomes of moving to 40%, with Entain's response forming one element of that wider discussion. Researchers who track gaming tax policy have pointed out that any rate change would apply specifically to machines located in betting shops and adult gaming centres, distinguishing it from online gaming duties that operate under separate rules.

According to the details released alongside the consultation notice, the company has linked the job review process to these tax considerations, and it has stated that further updates will follow once the consultation period concludes and any required adjustments are determined.

Potential Effects on Betting Shop Network

Warnings included in the company's statements suggest that hundreds of betting shops could face viability challenges if the higher duty rate takes effect, since the additional costs would reduce margins on machine gaming that currently contribute significantly to overall revenue in many locations. Those who've examined similar tax adjustments in previous years observe that operators often respond with operational reviews that can include site closures alongside workforce changes.

Entain has not specified exact numbers of shops that might close, but the modelling referenced in its communications indicates the scale of the financial pressure, and it has committed to keeping staff and stakeholders informed as the situation develops through the remainder of the year.

Conclusion

The sequence of events shows Entain responding to the proposed MGD increase through both internal consultations and direct communication with government figures, while the outcome of the tax review remains under consideration by officials. Data shared by the company and referenced modelling continue to inform discussions around the balance between tax revenue goals and the operational sustainability of physical gaming venues across the UK.