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Entain Appeals Directly to Prime Minister Burnham as Another Round of Job Cuts Looms

By jili tutorial · September 17, 2026

Entain Appeals Directly to Prime Minister Burnham as Another Round of Job Cuts Looms

Overview: A Growing Storm in the UK Betting Industry

The operator of Ladbrokes and Coral, Entain, is preparing to eliminate up to 400 of its 2,000 customer care positions across the United Kingdom. The company attributes these cuts to what it describes as the “simplification” of its customer service division, driven primarily by new tax burdens imposed on the industry. As the Autumn Budget approaches, the London Stock Exchange-listed firm has intensified its lobbying efforts, hoping to prevent another round of tax increases that could further destabilize the sector.

This article breaks down the key developments, contextualizes the ongoing tax debates, and explores the broader implications for workers, communities, and the betting industry as a whole.

The Core Issue: Proposed Doubling of Machine Games Duty

What Is Machine Games Duty (MGD)?

Machine Games Duty is a tax levied on profits from gaming machines—such as fixed-odds betting terminals (FOBTs)—located in betting shops, arcades, and bingo halls across the UK. Currently, MGD is applied at three different rates depending on the type of machine and stake limits:

Current RateProposed RateChange
5% (lower)10%Double
20% (standard)40%Double
25% (higher)50%Double

Chancellor of the Exchequer, John Healey, is reportedly considering this significant increase as part of the upcoming Autumn Budget, scheduled for 28 October 2026. The proposal has gained the support of prominent gambling reform campaigners, including former Prime Minister Gordon Brown.

Entain’s Stake in the Debate

Entain operates over 2,300 betting shops across Britain. According to CEO Stella David, doubling the standard MGD rate would add approximately £100 million to the annual cost of running the company’s retail operations. She argues that such a rise would have severe consequences for both the business and the communities it serves.

In a letter to Prime Minister Andy Burnham, David wrote:

“Many of those shops have been part of their local communities for decades, providing jobs, supporting local economies and offering familiar, staffed places where customers meet and interact. A substantial increase in MGD would therefore bear directly on many of the people and places the Makerfield Test is intended to support.”

The ‘Makerfield Test’: A Political Principle Under Pressure

What Is the Makerfield Test?

The Makerfield Test is a policy principle championed by Prime Minister Burnham, named after the constituency he represents in Parliament: Makerfield, located in Greater Manchester, northwest England. The test is designed to ensure that national policies deliver tangible benefits to areas historically “overlooked” by central government in Westminster.

Why Entain Is Using It

Entain’s CEO is appealing directly to this principle, arguing that increasing MGD would disproportionately harm the very communities the Makerfield Test is meant to protect. Many betting shops are located in economically deprived areas, where they provide stable, local employment and serve as social hubs. David’s letter explicitly urges the government to consider the “real-world consequences” before making a final decision:

“I hope that, before any decision is taken on MGD, the government will look beyond the headline tax rate and consider the real-world consequences for the people whose livelihoods depend on these businesses and the communities in which they operate.”

The Broader Tax Context: A Year of Mounting Pressure

A Timeline of Recent Tax Increases

The UK betting industry has been grappling with tax hikes for well over a year. The conversation began in early-to-mid 2025, when Rachael Reeves—then Chancellor of the Exchequer under former Prime Minister Keir Starmer—began considering tax increases on online gambling.

Despite extensive lobbying from the betting and horse racing sectors, Reeves enacted the following changes:

Immediate Impact on Entain

The rise in RGD has already hit Entain’s financial performance. The company’s stock has been declining steadily, and it is set to exit London’s prestigious FTSE 100 index after a six-year stint. This marks a significant downgrade for a company that was once a blue-chip staple.

Ripple Effects Across the Industry

Although retail betting was initially exempt from the RGD hike, the knock-on effects have been severe. Major operators—including William Hill, Paddy Power, and Betfred—have all announced shop closures in response to the tightening margins. Notably, some smaller firms like Boyle Sports and Jennings Bet have continued to open new shops, suggesting that the impact varies by business model and regional focus.

Projected Consequences of the MGD Increase

Job Losses and Shop Closures

Entain has cited data commissioned by the Betting and Gaming Council (BGC) suggesting that a 40% MGD rate could lead to:

Stella David emphasized the human cost:

“These are people losing their jobs and communities losing long-established high-street businesses. They matter particularly in communities where good local employment can be difficult to find.”

Cumulative Effect on Workers

The proposed 400 job cuts in customer care roles are not the first wave of redundancies at Entain. In July 2025, the company cut 500 jobs, largely in corporate, product, and technology teams. Together, these reductions signal a ongoing restructuring that could accelerate if tax pressures continue.

Beyond Taxes: The Role of Technology and Automation

Are Job Cuts Solely Tax-Driven?

While Entain explicitly links the latest redundancies to tax burdens, industry analysts point to another, less-discussed factor: technological change. All major betting companies are, at their core, tech companies. They rely heavily on digital platforms, data analytics, and—increasingly—artificial intelligence (AI) .

AI is being used to:

The Inevitable Shift

Many observers argue that the current tax burden has accelerated a process that was already underway. Automation and AI-driven simplification were likely to reduce headcounts in customer care and tech teams eventually. The tax hikes have simply made this restructuring more urgent from a cost-saving perspective.

This dual pressure—rising taxes and technological disruption—means that workers in the sector face a particularly uncertain outlook.

What Happens Next?

Key Dates to Watch

Entain’s Final Appeal to the Prime Minister

In closing her letter to Prime Minister Burnham, Stella David wrote:

“I hope you will ensure their voices are heard before any decision is taken in the Autumn Budget, and that the outcome meets the Makerfield Test you have set for your government.”

This appeal is both a tactical move—tying the issue to Burnham’s own policy framework—and a signal that the industry is prepared to fight hard against further regulatory and fiscal pressure.

Conclusion: A Sector at a Crossroads

The UK betting industry is facing one of its most challenging periods in decades. Tax increases on both online and retail operations are reshaping the economics of the sector, leading to job cuts, shop closures, and a potential exodus from major stock indices. At the same time, technological change is forcing companies to rethink their workforce structures.

Entain’s direct appeal to Prime Minister Burnham, invoking his own Makerfield Test, underscores the human and community stakes involved. The outcome of the Autumn Budget will determine not just the fate of thousands of workers in customer care roles, but the long-term viability of betting shops as fixtures of the British high street.