Entain Criticises UK Budget After Sharp Rise in Gambling Taxes
Entain has issued a formal statement following the UK Government’s decision to raise gambling taxes, arguing that the sharper tax burden will weaken the regulated sector, reduce the industry’s economic contribution and push more players toward unlicensed operators.
Entain Flags Consequences of Higher Taxes
Entain responded to the Budget by stressing that the new tax framework places additional pressure on licensed operators at a time when the sector is already adapting to regulatory shifts. The company aligned itself with the Betting and Gaming Council in calling for stable rules and proportionate taxation that keep customers within the legal market.
The revised Remote Gaming Duty and General Betting Duty will create an estimated additional annual cost of around £200 million for Entain’s UK and Ireland online business before any mitigating actions. The group expects to offset roughly a quarter of this amount through immediate reductions in marketing and promotional activity. Based on the proposed timeline, the company anticipates an EBITDA impact of about £100 million in 2026 and £150 million from 2027.
Entain argues that the higher tax burden will lower the competitiveness of licensed operators compared with unregulated sites that pay no taxes and provide no formal player protections.
Concerns Over Jobs, Sports Funding and the Black Market
The company warned that the effects of the new duties will extend beyond its own balance sheet. Entain believes the measures will put jobs at risk, reduce funding for sports and ultimately expand the black market. Operators with less capacity to absorb the higher costs may scale back their activity or withdraw from the market, creating openings for unlicensed competitors.
Despite the pressures, Entain notes that its global scale and diversified portfolio help cushion the impact of regulatory and tax changes. The group also expects that some smaller operators will be forced out of the UK market, which could lead to market share gains for larger companies.
CEO Urges Government to Address Illegal Operators
CEO of Entain Stella David delivered a clear warning about the consequences of the policy shift.
“We are deeply disappointed by today’s decision to punitively increase UK gambling taxes, putting at risk an industry which already contributes £7 billion annually to the UK economy and supports over 100,000 jobs across the country.
Disproportionately increasing gambling taxes will not only have a detrimental impact on our industry but also heightens the risk for customers. As seen in other countries, punitive tax increases often lead to lower tax revenues overall, whilst also driving players to illegal, unregulated operators with no player protections. The Government must now urgently tackle the black market and the consequences of today’s decision.
Entain remains well positioned to deliver sustainable growth, underpinned by the Group’s diverse geographic footprint and strong portfolio of leading positions in attractive markets,” she said.