Inspired Entertainment Grows in Third Quarter Despite Tax Pressure

Inspired Entertainment increased its UK revenue by 4 percent year on year in the three-month period ending September 30, even though the Remote Gaming Duty rate in the UK rose from 21 percent to 40 percent in April. Management said this growth came from strong operational volume gains and that the higher tax burden was absorbed by this increase.

The company's total revenue fell 29 percent over the same period, from $86.2 million to $61.4 million. The decline was caused by the sale of the UK Holiday Parks division in November 2025 and the restructuring of the UK Pubs business.

Following new tax decisions announced in October, the company plans to further consolidate its UK business units. An increase in the Machine Games Duty rate from 20 percent to 25 percent in April 2027 has led to the development of cost optimization strategies. Chairman and CEO Brooks Pierce said the budget removed a significant uncertainty, but that the increase in machine duty was disappointing and that it is manageable.

Inspired supplies games and machines to customers in the UK, including Entain (owner of Ladbrokes and Coral) and Mecca Bingo, which belongs to Rank Group. Operators in the sector have warned that the machine duty increase could lead to mass closures of betting shops. Entain, Betfred and Flutter were among the companies most concerned about this. If these warnings materialize, Inspired's UK retail offering may need to shrink to adapt.

The company's target markets span a wide range. Greece, Canada and the US are among the main markets that make a significant contribution to the company's fiscal year revenue.