The United Kingdom raises the tax on betting machines to 25% and Entain calculates a cost of almost 30 million euros a year

Entain, the international sports betting and gaming group that owns brands such as Ladbrokes, Coral and bwin, has reacted with a statement to the British Government's Budget presented today. The accounts include a new increase in gambling taxes.

The change that most affects the company is that of the Machine Games Duty, the tax on the gross gaming income of type 2 machines installed in its betting premises. It will go from 20% to 25% as of April 1, 2027.

Entain estimates that the move will result in an additional annualised cost of around £25 million (€29.8 million) for its land-based business in the UK and Ireland, before any measures to offset it. The estimate is based on analysts' consensus forecasts for that business's net gaming revenue in 2027.

The increase is below what the company feared. In September, its CEO, Stella David, sent an open letter to the British prime minister to warn of the consequences of raising this tax to 40%. In that scenario, Entain estimated a cost of about 100 million pounds (119.4 million euros) per year.

In the statement, Entain declares itself "disappointed" by the decision to increase the tax burden of an "already heavily taxed" industry. It warns of a detrimental effect on the sector as a whole, British shopping streets and employment. In its opinion, the new increase aggravates the pressure that the sector has been under since the "disproportionate" increases announced in November 2025.

Stella David sums it up in the statement: "This is another disappointing decision by the Government. The gambling tax hikes announced in November last year have already had detrimental consequences across the industry, with effects on employees, communities and also customers. These additional tax changes will further compound that damage and push more people into the growing illegal market."

The CEO adds that the company will continue to work to limit the impact on the business, the workforce and the communities in which it operates. "Our priority is to protect employment wherever possible, while supporting a sustainable presence on the UK's shopping streets," she says.

Beyond the cost, Entain sees an opportunity in the readjustment of the market. It claims to have the strongest offer on British shopping streets and expects to win back customers if its competitors review their presence in the country.

To offset the blow, the group will combine the rationalisation of its network of premises, optimisation initiatives across the group and potential market share gains. With this, it hopes to completely neutralise the impact of this increase by the end of 2028.

Entain is keeping its 2026 guidance set unchanged on Oct. 15. It is also maintaining its target of generating £500 million (€596.8 million) of annual adjusted cash flow by 2028. The group calculates that flow before working capital, dividends, acquisitions and their associated financing.

The company, which in Spain operates from Ceuta through Electraworks, where its online business grew by 35% in 2025, argues that its diversified and global-scale portfolio puts it in a good position to emerge stronger in the long term