Andy Burnham has been warned a fresh attack on gambling could cost nearly 16,000 jobs as the owner of Ladbrokes axed another 400 staff following the last tax raid.

The Prime Minister and his Chancellor John Healey are considering doubling machine gaming duty (MGD) – the tax levied on slot machines – to 40 per cent in the Budget next month.

It comes after Burnham lumped betting shops in with vape shops and ‘dodgy businesses linked to organised crime’ as he outlined plans to save Britain’s ‘hollowed out’ high streets.

The target of his crackdown is thought to be so-called adult gaming centres (AGCs) – slot machine venues that are often open 24 hours a day and would be hammered by an increase in tax.

But gambling bosses warned of the devastating impact it would have on the rest of the industry – hitting everything from bingo halls to bookies and costing thousands more jobs.

The sector is already reeling after former Chancellor Rachel Reeves hiked remote gaming duty from 21 per cent to 40 per cent and the levy on online sports betting from 15 per cent to 25 per cent.

Ladbrokes and Coral owner Entain yesterday said it planned to cut up to 400 customer care jobs to remain competitive in an ‘increasingly challenging operating environment’.

It came just days after Bet365 announced plans to shed 300 jobs at its headquarters in Stoke-on-Trent, adding to more than 4,500 cuts across the industry since Labour’s Budget last year.

And in a letter to Burnham, Entain chief executive Stella David warned of worse to come if he presses ahead with an increase in taxes on slot machines.

‘A 40 per cent MGD rate could lead to up to 1,470 betting shop closures and 15,900 job losses and ultimately result in a net loss to the Exchequer of around £120million,’ she said.

‘These are not theoretical efficiencies in a financial model. They are people losing their jobs and communities losing long-established high-street businesses.

‘These jobs matter. They matter particularly in communities where good local employment can be difficult to find.’

Warning the tax hike would add £100million to Entain’s costs in the UK, David noted that half the company’s retail workforce are women and more than one in five are under 25.

She recognised that gambling ‘can cause serious harm for a minority’.

But adding that it is ‘enjoyed responsibly by millions of adults’, she said: ‘A visit to the betting shop, a football accumulator or a bet on the Grand National remains part of the sporting and social lives of many people across Britain.

'I believe it is possible both to protect those at risk of harm and to respect the freedom of adults to enjoy a lawful pastime responsibly.’

David said the decision to cut another 400 jobs ‘not been made lightly’ after announcing plans earlier this year to cut 500 technology and corporate roles. 

Entain employs more than 13,000 people in the UK and operates across 2,300 betting shops.

It previously warned the tax rises would cost £150million this year and an additional £100million in 2027. 

The latest cuts could see a fifth of customer care jobs slashed across 11 countries, including the UK. It did not reveal how many jobs in the UK would be affected. 

David warned that any further tax changes would accelerate illegal gambling, having a knock-on impact on how much the Treasury collects in tax.

‘We are not asking to be insulated from taxation,’ she said. ‘A further doubling of Machine Games Duty would therefore add another significant cost to businesses already struggling to absorb major tax increases, stacking the odds against labour-intensive high-street operators and making it harder to sustain shops, jobs and investment in local communities.’