Tax increase to add £25 million annual burden for Entain

Entain, owner of the Ladbrokes and Coral brands, expects the planned increase in the gaming machine tax in the UK to create an annual cost of about £25 million. The company plans to absorb this additional burden by the end of 2028.

Gaming machine duty is a tax levied in the UK on gaming machines in betting shops, amusement arcades and similar venues. An increase in the tax rate directly affects the revenues of companies that operate such machines.

Entain's statement is notable for showing how major operators are preparing for changes in regulatory and fiscal conditions. How the additional cost will be offset may be reflected in pricing, efficiency and investment plans.

The report does not provide details on which items the company will use to cover this cost. Industry observers expect the company to give clearer information on this matter in its upcoming periodic reports.