Entain Estimates £25 Million Annual Cost From UK Gambling Tax Rise
Entain says the increase in UK Machine Gaming Duty from 20% to 25%, effective April 2027, will add approximately £25 million in annualised costs to its UK&I Retail business. FY26 guidance and its expectation of £500 million in annual adjusted cashflow by 2028 remain unchanged.
Following the UK Government's Budget announcement, Entain plc reported that the increase in Machine Gaming Duty from 20% to 25%, effective April 2027, will result in an estimated annualised additional cost of approximately £25 million to its UK&I Retail business. The company stated it intends to fully mitigate this impact by the end of 2028 through a combination of estate rationalisation, group-wide optimisation initiatives, and potential market share gains. Entain confirmed that its FY26 guidance and its expectation of generating £500 million in annual adjusted cashflow by 2028 remain unchanged.
The company expressed disappointment regarding the tax increase, noting its potential detrimental impact on the wider industry and UK high streets.