Entain Faces £25 Million Hit From UK Tax Increase

Entain, owner of Ladbrokes, expects an additional annual burden of around £25 million ($33 million) in its UK retail business. The reason is the increase in Machine Games Duty from 20% to 25% announced in Wednesday's budget. Treasury Minister John Healey said the increase will take effect from April 2027.

The increase applies to machines with a stake above £1 or a prize above £100. Low-stake machines found in venues such as pubs will be excluded from the change. The government said it will use this revenue to fund a freeze on business rates for retail, hospitality and leisure businesses.

The Betting and Gaming Council warned that the increase could put around 9,000 jobs at risk. Citing research by EY, the council said around 1,000 betting shops and casinos could close or face the threat of closure. Entain CEO Stella David also drew attention to the effect of the tax increase on betting shops in a letter she wrote to Prime Minister Andy Burnham in September.

The company aims to offset the cost increase by the end of 2028. To do this, it plans to reduce its number of retail stores and introduce various efficiency measures. Entain also argues that if rivals review their presence in the UK market, this could create an opportunity to win back customers.

David described the government's decision as a disappointment. She said earlier tax increases announced in November had already harmed the sector, and that the new changes would deepen that damage and push people towards a growing illegal market.