Entain expects the increase in UK Machine Games Duty (MGD) from 20% to 25% to add about £25m a year to the costs of its UK and Ireland (UK&I) retail business, before any mitigating measures, the company said in a statement to the London Stock Exchange on 28 October 2026.
The group, listed in London, issued the statement after the UK Government’s Budget, which raises the duty on gross gaming revenue from type 2 gaming machines in Entain’s retail shops from 1 April 2027. The £25m estimate is based on consensus estimates for FY27 UK&I retail net gaming revenue (NGR).
Entain’s view of the tax rise
Entain said it believes well-balanced regulatory frameworks, including proportionate tax regimes, are critical to protecting customers, while also contributing to employment, local communities and tax revenues.
The company said it is disappointed by the decision to increase the tax burden on an already highly taxed industry. According to Entain, the latest rise will have a detrimental impact on the wider industry, UK high streets, jobs and livelihoods, adding to the pressure the sector has faced since the tax increases announced in November 2025, which the company describes as disproportionate.
Mitigation plan
Entain, which says it has the strongest offering on the UK high street, expects an opportunity to recapture customers as peers re-evaluate their UK market presence. Through estate rationalisation, group-wide optimisation initiatives and potential market share gains, the company expects to fully mitigate the impact of the increase by the end of 2028.
Entain’s FY26 guidance, as stated on 15 October 2026, is unchanged. So is its expectation of generating £500m of annual adjusted cashflow in 2028, defined as cashflow before working capital, equity dividends, acquisitions and associated financing.
The company said it will continue to act to limit the impact of the additional taxes. Entain said its fundamentals and its focus on growth and optimisation support its confidence in future cash generation, and that its global portfolio positions the group as a long-term winner in the industry.
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.
Stella David, Chief Executive Officer, Entain
The full statement is on the Entain group website.
Industry context
The 25% rate applies to machines with a maximum charge to play above £1 or a maximum prize above £100, according to the Budget 2026 overview of tax legislation and rates. That covers the category B machines in betting shops, adult gaming centres, bingo halls and casinos, while lower-stakes machines stay at 20%. Chancellor John Healey confirmed the Machine Games Duty rise in the Budget on 28 October 2026, and the measure goes into the Finance Bill 2026-27.
The rise follows the Budget of 26 November 2025, which raised Remote Gaming Duty from 21% to 40% from 1 April 2026 and set a new 25% General Betting Duty rate for remote bets from 1 April 2027, according to HMRC. Bets on UK horseracing are excluded from the remote betting rate. Entain, the owner of Ladbrokes and Coral, runs both a UK online business and a UK betting shop estate, so it pays the higher online and retail rates.
In its first-quarter trading update, Entain reported online NGR up 5%, with UK&I up 13%. The higher MGD rate takes effect on 1 April 2027.
Source: Entain
