Entain: Tax increase to cost retail arm £25 million a year

Global sports betting and gaming group Entain, listed on the London Stock Exchange (LSE: ENT), responded to the new tax increase announced in the UK Government's Budget. The company expects an additional annual cost of around £25 million in its UK and Ireland retail business. This figure is its estimate before any mitigating measures are taken.

The increase concerns Machine Games Duty on Category 2 gaming machines in retail shops. The rate of this duty, calculated on gross gaming yield, will rise from 20% to 25% from 1 April 2027. Entain based its estimate on consensus expectations for net gaming revenue in its UK and Ireland retail business for FY27. The company noted that earlier increases announced in November 2025 were already putting pressure on the sector.

Entain CEO Stella David described the government's decision as disappointing. According to David, the taxes negatively affect employees, communities and customers, and push people towards the illegal market. The company also said it sees an opportunity to win customers as UK competitors reassess their presence in the market.

Entain aims to fully offset the tax impact by the end of 2028 by reorganising its store estate, continuing group-wide efficiency work and possibly growing its market share. The group announced that its FY26 expectations, dated 15 October 2026, remain unchanged, and that its target of £500 million in annual adjusted cash flow for 2028 is also maintained.