Entain has criticised the UK Government's latest increase in gambling taxes, announced in the Budget on 28 October, and estimates it will add about £25m a year to the costs of its UK and Ireland retail business before any mitigating action.
What changes
- Tax: Machine Gaming Duty (MGD), charged on gross gaming revenue from type 2 gaming machines in betting shops.
- Rate: rising from 20% to 25% from 1 April 2027.
- Cost to Entain: about £25m a year, based on consensus forecasts for its UK and Ireland retail net gaming revenue in FY27.
- Outlook: FY26 guidance, set on 15 October 2026, and the target of £500m annual adjusted cash flow in 2028 are both unchanged.
How Entain plans to respond
The owner of Ladbrokes and Coral expects to fully offset the extra cost by the end of 2028. It plans to do this by rationalising its shop estate, cutting costs across the group and winning market share. As the largest betting shop operator on UK high streets, it expects to win back customers if rivals scale back their UK presence.
The group said the rise comes on top of the "disproportionate" tax increases announced in November 2025 and will hurt the wider industry, high streets, jobs and livelihoods.
What Entain 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.
We will continue to work hard to limit the impact of these changes on our business, our people, and the communities in which we operate. Our priority is to protect jobs wherever possible whilst supporting a sustainable retail presence on UK high streets.”
Why it matters for suppliers
Machine Gaming Duty falls on the gaming machines in betting shops, so a higher rate squeezes the margin operators earn from retail cabinets. Entain's plan to rationalise its estate suggests fewer shops and fewer machines over time, and other high-street operators face the same pressure. Suppliers of retail gaming machines and betting shop technology should expect UK operators to push harder on costs and revenue shares as the April 2027 start date approaches.
- Entain plc statement regarding UK gambling tax increases
