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The London-listed sports betting and gaming operator responded to the UK Government’s Budget statement on November 26, expressing concerns that the tax increases will disadvantage regulated operators competing against unlicensed black market alternatives.
The company criticized the changes for failing to balance regulatory frameworks with proportionate taxation, arguing that the new rates will limit regulated operators’ ability to deliver competitive customer offerings while illegal operators remain untaxed and unregulated.
Entain warned the tax increases would damage the gambling industry’s economic contribution, jeopardize employment across the sector, reduce funding available for sports, and inadvertently benefit black market operators.
£200M Cost Before Mitigation
The revised UK rates for Remote Gaming Duty and General Betting Duty will impose approximately £200 million in additional annual costs on Entain’s UK&I Online business, according to internal estimates based on FY25 UK&I Online Revenue.
Entain plans to mitigate approximately 25% of the financial impact through immediate cost reduction measures, primarily targeting marketing and promotional expenditure. These actions will commence alongside the tax implementation dates.
The mitigation strategy translates to an EBITDA impact of approximately £100 million in 2026—representing 8% of the company-compiled consensus FY26 EBITDA of £1,220 million—rising to approximately £150 million annually from 2027.
The company expects to gain market share as competitors exit the UK market due to the increased tax burden, positioning itself to benefit from its scale and operational quality.
New Tax Structure
Remote Gaming Duty, applied to Gross Gaming Revenue from online casino games, bingo and poker, will rise from 21% to 40% beginning April 2026. For online sports betting (excluding horserace betting and Self-Service Betting Terminals), the current 15% General Betting Duty rate will remain until April 2027, when a new 25% Remote Betting Rate takes effect.
Retail gaming and sports betting rates remain unchanged at 20% and 15% respectively. Horserace betting continues at 15% plus a 10% levy across all channels.
Despite the financial headwinds, Entain emphasized its strategic focus remains on delivering sustainable growth through its globally diversified portfolio across more than 30 regulated territories.
Leadership Response
“We are deeply disappointed by today’s decision to punitively increase UK gambling taxes, putting at risk an industry which already contributes £7 billion annually to the UK economy and supports over 100,000 jobs across the country,” said Stella David, CEO of Entain.
“Disproportionately increasing gambling taxes will not only have a detrimental impact on our industry but also heightens the risk for customers. As seen in other countries, punitive tax increases often lead to lower tax revenues overall, whilst also driving players to illegal, unregulated operators with no player protections. The Government must now urgently tackle the black market and the consequences of today’s decision.”
“Entain remains well positioned to deliver sustainable growth, underpinned by the Group’s diverse geographic footprint and strong portfolio of leading positions in attractive markets.”
Company Background
Entain plc (LSE: ENT) operates as a FTSE100 company and ranks among the world’s largest sports betting and gaming groups with both online and retail operations. The company’s brand portfolio spans sports betting properties including BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports Interaction, STS and SuperSport, alongside gaming brands Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino.
Through its 50/50 joint venture BetMGM, Entain maintains a leadership position in US sports betting and iGaming. The company operates exclusively in domestically regulated or regulating markets across over 30 territories worldwide.
Source: Entain plc
