The chief executive of Entain, the FTSE 100 owner of Ladbrokes and Coral, has warned the government that higher gambling taxes in next month’s Budget could lead to widespread betting shop closures and a sharp reduction in UK investment.

In her first interview since taking the role permanently in April, Stella David said any increase in gambling duties would compel Entain “to consider its investment level in the UK”. She added there was “no doubt” that higher taxes would trigger “shop closures” across its 2,300 high street outlets.

“At the end of the day we want to make a profitable global business,” David said. “If the UK becomes uncompetitive, there are other markets we can pivot to. Every point of tax increase has a consequence — certain shops become unviable, and the scale depends on how far it goes.”

The warning comes amid growing expectations that Chancellor Rachel Reeves will raise gambling taxes in her November Budget, following calls from former prime minister Gordon Brown to use the proceeds to help fund the removal of the two-child benefit cap.

Proposals under consideration include raising the remote gambling duty on online betting from 21% to 50%, increasing slot and gaming machine duties from 20% to 50%, and lifting general betting duty on non-racing bets from 15% to 25%.

A report by the Institute for Public Policy Research estimated these measures could raise around £3.2 billion annually for the Treasury.

At the Labour Party Conference last week, Reeves said there was “a case for gambling firms paying more,” adding: “They make an important contribution to the economy but should pay their fair share of taxes — and we’ll make sure that happens.”

David insisted that Entain already makes a “fair contribution,” highlighting that the company is among the UK’s top 20 taxpayers, contributing £513 million to the Exchequer last year.

Across the wider gambling sector, operators pay about £4 billion in tax annually, according to the Betting and Gaming Council. The industry also contributes £350 million to British horse racing, £40 million to English football, and over £12.5 million to sports including snooker, darts, and rugby league.