Entain slams further betting duty hike but expects to mitigate impact

Entain PLC on Wednesday said it is disappointed by the UK government's decision to increase the tax burden on the gambling industry which it said would cost it £25 million per year, before any mitigating measures.

The Isle of Man-based sports betting and gaming operator said the latest rise in tax will have a "detrimental impact on the wider industry, UK high streets, jobs and livelihoods, compounding the pressures the sector is already facing since the disproportionate tax increases that were announced in November 2025."

In Wednesday's budget, Chancellor John Healey raised machine games duty to 25% from 20% for higher-stakes gambling machines.

In last year's budget, the government increased the rate of remote gaming duty from 21% to 40% from the start of April this year, and said a new remote betting rate of 25% will be introduced within general betting duty from April 1, 2027.

However, shares in Entain, which owns the Ladbrokes and Coral brands, shot up 5.2% to 476.30 pence each in London on Wednesday, reflecting fears that the duty could be have increased to as much as 40%.

Entain estimates an annualised additional cost to its UK & Ireland Retail business of £25 million, before any mitigating measures, from the measures.

But through a combination of estate rationalisation, optimisation initiatives and potential market share gains, it expects to be able to fully mitigate the impact of this latest tax increase by the end of 2028.

Entain's full-year 2026 guidance and expectation of generating £500 million annual adjusted cashflow in 2028, both remain unchanged.

Chief Executive Stella David said this is "another disappointing" decision by the government.

"The previous gambling tax increases announced in November last year have already had detrimental consequences across the industry, with the effects being felt by employees, communities as well as customers. These additional tax changes will further compound that damage and push more people into the growing illegal market."

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