Global sports betting and gaming group Entain has issued a formal response to the UK Government’s recent budget statement, voicing strong disappointment over the decision to implement further increases on UK gambling taxes.
While acknowledging the importance of proportionate tax regimes in fostering a well-balanced regulatory environment, the operator argued that stacking additional fiscal burdens on an already heavily taxed sector threatens retail operations, employment opportunities, and local communities.
The primary driver of the new fiscal pressure stems from an adjustment to UK Machine Gaming Duty (MGD). Charged on Gross Gaming Revenue generated from type two gaming machines within retail betting shops, MGD is set to increase from 20% to 25% starting April 1, 2027. Entain estimates that this specific policy change will generate an annualized additional cost of approximately £25 million for its UK and Ireland retail business before accounting for any mitigating measures.
Navigating retail pressures and mitigation plans
Entain maintains a leading presence across the UK High Street, positioning the group to benefit from potential customer recapture as competing operators re-evaluate their physical market footprints. By leveraging a combination of targeted estate rationalization, group-wide operational optimizations, and anticipated market share gains, management expects to fully offset the financial impact of the tax increase by the end of 2028.
Despite the headwinds introduced by the tax adjustments, Entain confirmed that its FY26 guidance and its long-term target of generating £500 million in annual adjusted cash flow by 2028 remain entirely unchanged. The group emphasized that its robust commercial fundamentals, diversified global portfolio, and disciplined focus on growth will enable it to continue delivering strong future cash generation.
Stella David, Chief Executive Officer of Entain, commented on the development:
“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.”
Decisive action against regulatory headwinds
Entain reiterated its commitment to taking decisive action to safeguard its workforce and maintain sustainable retail operations across UK communities. Company leadership underscored that protecting physical high-street venues remains a vital priority, particularly as regulatory changes continue to reshape the domestic operating landscape.
