Entain Faces £25M Hit From UK Budget Gambling Tax Rise as Industry Warns of Job Losses

Entain faces an additional £25 million ($33 million) annual tax bill following a gambling duty increase announced in the UK government’s budget on Wednesday (October 28). An increase in UK taxes could cost Entain £25 million ($33 million) per year. (Image: Shutterstock) Chancellor John Healey confirmed that Machine Games Duty (MGD) will rise from 20% to 25% from April 2027. The increase applies to machines with stakes exceeding £1 or prizes above £100. The Betting and Gaming Council (BGC) warned that the latest increase could put almost 9,000 jobs at risk. It cited EY research suggesting nearly 1,000 betting shops and casinos could close or face a serious threat of closure. The government said the higher duty would help fund a business rates freeze for retail, hospitality, and leisure businesses. Lower-stakes machines, including those typically found in pubs, will not be subject to the increase. The move comes despite warnings from the gambling industry that a tax increase would lead to job losses. Entain CEO Stella David wrote to Prime Minister Andy Burnham in September, urging him to consider the wider effect the tax rise would have on betting shops. The increase follows gambling tax changes announced in November 2025. Remote Gaming Duty rose to 40% in April 2026, while General Betting Duty is scheduled to increase to 25% in April 2027. Entain Sees Opportunity as Rivals Face Closures Entain, which operates Ladbrokes and Coral betting shops, estimates the latest increase will cost its UK and Ireland retail business approximately £25 million annually before mitigation. However, the company said it should be able to offset the costs by the end of 2028. Its strategy includes reducing the size of its retail estate and introducing various efficiency measures. It also said that the increase in tax presents an opportunity for “customer recapture as peers re-evaluate their UK market presence.” CEO Stella David criticized the government’s decision, warning that tax increases would damage the regulated 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,” David said. “These additional tax changes will further compound that damage and push more people into the growing illegal market.” She added that Entain’s priority was to “protect jobs wherever possible whilst supporting a sustainable retail presence on UK high streets.” BGC Warns of Casino Closures and High Street Job Losses The BGC expressed particular concern about the impact on land-based casinos, warning that the higher duty could force otherwise viable venues to close. The trade association said closures were likely in northern England and Scotland. BGC CEO Grainne Hurst said the government had ignored repeated warnings about the consequences. “At 25 per cent, EY projects almost 9,000 people could lose their jobs and almost 1,000 betting shops and casinos could close or be at serious risk,” Hurst said. “These are real people and families facing the loss of their income and security, in places where alternative work can be hard to find.” Hurst also warned that tax increases could lead to further growth in the black market. “Higher taxes on the regulated industry also will make the illegal gambling market more attractive to customers, where operators pay no UK tax, contribute nothing to British sport and offer none of the safeguards required of licensed businesses,” she said. The BGC estimates the regulated betting and gaming industry contributes £6.8 billion ($9 billion) to the British economy, generates more than £4 billion ($5.3 billion) in taxes, and supports 109,000 jobs. The post Entain Faces £25M Hit From UK Budget Gambling Tax Rise as Industry Warns of Job Losses appeared first on Casino.org.