Entain, the operator behind Ladbrokes and Coral, has begun consulting on reductions to around 400 customer-service positions across its UK operations, a step tied directly to warnings about proposed rises in Machine Games Duty on slot machines that could reach £100 million in annual costs for the company alone.

The government is reviewing options that would lift the current 20 percent rate on these machines to as much as 40 percent, a shift that company leadership says threatens the viability of many high-street betting shops and could trigger further job losses throughout the gambling sector.

CEO Issues Open Letter on Sector-Wide Risks

Chief Executive Stella David addressed an open letter to Prime Minister Andy Burnham that outlines the scale of the potential impact, drawing on independent EY modelling which projects up to 1,470 shop closures and 15,900 job losses industry-wide if the higher duty takes effect.

Those figures also include an assessment that the Exchequer could face a net revenue loss once secondary effects such as reduced employment and business rates are taken into account, while the same modelling flags additional pressure on 24-hour slot venues and adult gaming centres now under separate tax consideration.

The consultation process at Entain follows directly from these projections, with the company stating that the proposed duty increase would force operational changes to maintain financial stability in its retail estate.

Timeline and Consultation Details

Discussions over the Machine Games Duty adjustment gained momentum during September 2026 as officials examined revenue-raising measures for the gambling industry, prompting Entain to accelerate its internal review of customer-service structures.

Staff briefings began shortly after the EY data was shared with government, and the company has indicated that any final decisions on the 400 roles will follow the standard consultation period required under UK employment law.

While the letter from Stella David emphasises the broader risk to the high-street network, the immediate focus remains on customer-service functions that support both online and retail betting activity.

Industry Modelling and Projected Outcomes

Independent modelling on MGD rate impacts prepared by EY forms the core evidence cited by Entain, showing how a doubling of the duty would affect operators with large retail footprints more severely than those focused solely on digital channels.

The analysis incorporates data on current machine revenues, employment costs, and local authority rates, producing the headline estimates of 1,470 closures and 15,900 positions at risk across the entire sector.

Company statements note that these outcomes would unfold over several years as leases expire and trading performance deteriorates under the higher tax burden.

Government Context and Next Steps

Officials continue to weigh the duty increase alongside other measures aimed at 24-hour slot venues and adult gaming centres, with responses to the open letter still awaited at the time of the Entain announcement.

The Prime Minister's office has not yet commented publicly on the specific projections contained in the EY report, leaving open the possibility that further economic analysis will be commissioned before any final policy decision.

Entain has committed to keeping affected employees informed throughout the consultation and to exploring redeployment options where feasible within the remaining UK estate.

Conclusion

The consultation launched by Entain represents the first concrete operational response to the proposed Machine Games Duty change, with the company's open letter and supporting EY figures now forming part of the evidence base under review by government.

Further updates on both the tax policy and the outcome of the 400-role consultation are expected in the coming months as the September 2026 discussions progress.