Entain Plans to Offset £25 Million Annual Gaming Machine Tax Cost

Entain has retained its 2026 guidance and £500 million annual adjusted cash flow target for 2028 despite expecting a £25 million yearly cost from higher UK Machine Games Duty.

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Good to know

• Entain expects to fully offset the additional annual cost by the end of 2028.
• Machine Games Duty on affected gaming machines will rise from 20% to 25% on April 1, 2027.
• The Ladbrokes and Coral owner plans changes to its shop estate, efficiency measures and potential market share gains.

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The company sees an opportunity to attract customers as competitors reconsider their UK operations. Entain described its high street offering as the strongest in the market and expects that position to help it recover some of the additional tax cost.

However, customer gains form only one part of the plan. The group also intends to rationalize its retail estate and pursue efficiency initiatives across the business. It outlined no specific closure or redundancy numbers in the update.

Entain Plans to Absorb the £25 Million Annual Cost

Entain disclosed its estimate in a London Stock Exchange statement on Wednesday, alongside the Autumn Budget announcement from Chancellor of the Exchequer John Healey.

The £25 million ($33.25 million) figure represents the expected annual cost to the UK and Ireland retail business before mitigation. Entain based the calculation on consensus forecasts for fiscal 2027 retail net gaming revenue.

The group expects its planned measures to offset that cost in full by the end of 2028. Meanwhile, the fiscal 2026 guidance issued on October 15 remains unchanged, as does the target for £500 million ($665 million) in annual adjusted cash flow in 2028.

Entain pointed to its international portfolio, growth plans and focus on efficiency as reasons for maintaining those expectations.

Jobs and High Street Shops Remain a Concern

The financial targets remain intact, but Entain warned that the wider industry faces further damage. It said the additional tax burden could affect high streets, employment and livelihoods after the increases announced in November 2025.

CEO Stella David also warned that higher gambling taxes could encourage customers to use illegal operators.

“We will continue to work hard to limit the impact of these changes on our business, our people, and the communities in which we operate. Our priority is to protect jobs wherever possible whilst supporting a sustainable retail presence on UK high streets,” David said.

Entain argued that proportionate taxes and balanced regulation help protect customers while supporting employment, communities and tax revenue.

Elsewhere, Flutter has already announced plans to cut up to 1,400 jobs across its UK and Ireland business. It cited the increase in Remote Gaming Duty when outlining those plans earlier in October.

When the UK Gambling Tax Changes Take Effect

From April 1, 2027, Entain will pay 25% Machine Games Duty on gross gaming revenue from affected Type 2 machines, up from 20%.

The new rate covers machine games with stakes above £1 ($1.33) or prizes above £100 ($133). Lower-stake machines will retain their current rate, protecting those machines in pubs and seaside arcades from the increase.

A separate change follows on April 1, 2028. Suppliers will become liable for duty on supplier-owned machines operating under profit-sharing arrangements.

The government expects the two measures to raise £135 million ($179.55 million) in 2027/28 and £150 million ($199.5 million) in 2028/29.

Those changes follow earlier online gambling tax increases. Remote Gaming Duty rose from 21% to 40% on April 1, 2026. General betting duty on remote betting will increase from 15% to 25% on April 1, 2027.

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