Entain warns UK gambling tax rise will cost £25 million annually
Entain has warned that the UK government’s latest gambling tax increase will cost its British and Irish retail operations approximately £25 million annually, while threatening jobs and pushing more customers towards illegal gambling operators.
The Ladbrokes and Coral owner criticised the government’s decision to increase Machine Games Duty from 20% to 25%, announced in Wednesday’s Budget.
Entain said the additional cost estimate excludes potential mitigation measures, including betting shop closures, operational efficiencies and increased market share as competitors reconsider their UK operations.
The company expects to fully offset the additional tax burden by the end of 2028 through estate rationalisation, group-wide cost reductions and potential customer gains.
Entain CEO Stella David said the decision would compound the impact of gambling tax increases announced in November 2025.
“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,” David said.
“These additional tax changes will further compound that damage and push more people into the growing illegal market.”
David said protecting employment and maintaining a sustainable presence on UK high streets would remain priorities.
Despite the additional costs, Entain maintained its full-year 2026 financial guidance and its target of generating £500 million in annual adjusted cash flow by 2028.
The company also suggested its established retail network could benefit as smaller competitors reassess their presence in the UK gambling market.
While the five per cent tax increase is significant it is not as bad as many in the industry feared, with some believing it may rise to 40%.
