Ladbrokes warns over ‘punitive’ tax seize on the playing business

Ladbrokes owner Entain has warned that a ‘punitive’ gambling tax raid would cost thousands of jobs.

Rachel Reeves is said to be plotting to hike industry levies as she struggles to make her Budget numbers add up.

It is thought that the Chancellor could double the duty on High Street bookies to 30 per cent and raise the online casino gaming levy to 50 per cent. 

Jobs gamble: Ladbrokes owner Entain has warned a gambling tax raid would cost thousands of jobs amid rumours Rachel Reeves is plotting to hike industry levies

More than £2billion was wiped off the value of London-listed gambling giants on Monday as investors were spooked by reports of a potential £3billion crackdown on the sector.

Entain chief executive Gavin Isaacs yesterday said such a move would have a ‘detrimental impact on the economic contribution of the gambling industry’.

Entain reported that group net gaming revenue jumped 8 per cent in the first quarter. 

Rank Group, which owns Mecca Bingo, also yesterday said net gaming revenue grew 12 per cent to £197.5million in the three months to September 30.

Bookies suffered a sharp share price drop after a Guardian report last week said a tax hike could raise £2.9billion for the Government next year and up to £3.4billion by the end of the decade.

Isaacs said that ‘further punitive tax increases’ would put thousands of jobs at risk.

But analysts at Investec said: ‘We believe that the speculation draconian taxes will be implemented in the Budget for the gambling space are far-fetched.’