Ladbrokes owner Entain flags fresh hit from second UK tax hike

Entain Warns of £25M Cost from Latest UK Gambling Tax Increase

Impact and Response to UK Gambling Tax Hike

Immediate Financial Impact

Oct 28 (Reuters) - Ladbrokes owner Entain said on Wednesday it expected an additional £25 million ($33.21 million) cost impact to its UK and Ireland retail business after the UK government raised taxes on the gambling industry for the second consecutive year.

Market Reaction

Shares of the betting company rose 5%, however, as the tax increases came in lower than expected.

Details of the Tax Increase

• British finance minister John Healey, delivering his first budget, raised Machine Games Duty, a tax on the net takings from some slot machines, to 25% from 20%

Industry Response

• Entain said it was disappointed with the government's decision to increase the tax burden on an "already highly taxed industry"

Background: Previous Tax Changes

• The latest increases follow last year's budget, when the UK government increased taxes on online gaming such as casino games and slots to 40% from 21% and on sports betting to 25% from 15%

Company Strategy

• Entain, which had already cut jobs to mitigate the higher costs, said it will continue to take decisive actions to navigate the additional taxes

Future Outlook

• The company kept its fiscal 2026 guidance and expectation of generating £500 million annual adjusted cashflow in 2028 unchanged

($1 = 0.7527 pounds)

(Reporting by Yamini Kalia in Bengaluru; Editing by Tasim Zahid)