The FTSE 100 sports betting and gaming operator acknowledged the tax changes announced in the UK Government’s Budget statement, warning that the increases will reduce the competitiveness of regulated operators against unlicensed black market alternatives.
Aligned with the Betting & Gaming Council (BGC), Entain maintains that balanced regulatory frameworks and proportionate tax regimes are essential for customer protection and sector sustainability. The company said the announced tax changes fail to deliver this balance and will force regulated operators to provide less attractive customer offerings compared to untaxed black market competitors.
The tax increases will have a detrimental impact on the gambling industry’s economic contribution, threaten employment, reduce sports funding, and strengthen the black market, according to the company.
Financial Impact and Mitigation Strategy
The changes to UK rates of Remote Gaming Duty and General Betting Duty will cost Entain’s UK&I Online business approximately £200 million annually before mitigations, based on internal estimates for FY25 UK&I Online Revenue.
The company expects to offset approximately 25% of this impact through measures including reduced marketing and promotional spend, commencing immediately alongside the tax implementation. Based on the proposed implementation timeline, this translates to an EBITDA impact of approximately £100 million in 2026 (8% of consensus FY26 EBITDA of £1,220 million) and approximately £150 million from 2027.
Entain anticipates capturing market share as other operators exit the UK market, benefiting from its position as a high-quality scale operator.
Tax Rate Changes
Remote Gaming Duty (charged on Gross Gaming Revenue from online casino games, bingo and poker) will increase from 21% to 40% from April 2026. General Betting Duty remains at 15% for online sports betting until April 2027, when a new Remote Betting Rate of 25% will apply to online sports betting (excluding horserace betting and Self-Service Betting Terminals).
The company remains focused on delivering its strategic priorities while absorbing the regulatory and tax changes, supported by its globally scaled and geographically diverse portfolio of leading positions across attractive markets.
Executive Commentary
“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.”
About Entain
Entain plc (LSE: ENT) is a FTSE100 company and one of the world’s largest sports betting and gaming groups, operating both online and in the retail sector. The Group owns a portfolio of established brands including BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports Interaction, STS, SuperSport, Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino.
The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and iGaming in the US. Entain is tax resident in the UK and operates exclusively in domestically regulated or regulating markets across over 30 territories.
Source: Entain plc
