The Ladbrokes and Coral owner expects to cover the extra cost by the end of 2028 and has kept its £500m cashflow target for that year.
Entain plc expects the rise in UK machine games duty (MGD) from 20% to 25% to add about £25 million a year to the costs of its UK and Ireland (UK&I) retail business, before any mitigating measures. The Ladbrokes and Coral owner gave the estimate in a statement to the London Stock Exchange on 28 October 2026, the day Chancellor John Healey delivered the Budget.
What the rise means for Entain
In its statement on UK gambling tax increases, Entain said the duty it pays on GGR from type 2 gaming machines in its shops will rise from 20% to 25% from 1 April 2027. The £25 million figure is based on consensus estimates for FY27 UK&I retail net gaming revenue (NGR).
Entain said it was disappointed by the decision to raise the tax burden on an already highly taxed industry. It said the rise would hurt the wider industry, UK high streets, jobs, and livelihoods, adding to the pressure from what it called the disproportionate tax increases announced in November 2025.
Stella David, chief executive officer of Entain, said:
‘The previous gambling tax increases announced in November last year have already had detrimental consequences across the industry, with the effects being felt by employees, communities as well as customers. These additional tax changes will further compound that damage and push more people into the growing illegal market.’
David added that Entain’s priority is to protect jobs wherever possible while keeping a sustainable retail presence on UK high streets.
How Entain plans to cover the cost
Entain expects to fully mitigate the impact by the end of 2028 through:
- estate rationalisation
- group-wide optimisation initiatives
- potential market share gains
The company said it has the strongest offering on the UK high street and sees an opportunity to win back customers as rivals re-evaluate their UK presence.
Its FY26 guidance, as stated on 15 October 2026, is unchanged. So is its expectation of £500 million in annual adjusted cashflow in 2028. Entain defines adjusted cashflow as cashflow before working capital, equity dividends, acquisitions, and associated financing.
What the Budget changed
Healey raised machine games duty to 25% for machine games with stakes over £1 or prizes over £100, from 1 April 2027. Lower-stake machines keep their current rate, which protects pubs and seaside arcades.
From 1 April 2028, machine suppliers will also become liable for the duty on supplier-owned machines run under profit-sharing arrangements. The government expects the two changes together to raise £135 million in 2027/28 and £150 million in 2028/29.
The MGD rise comes on top of the online duty increases announced in the November 2025 Budget.
| Duty | Change | From |
| Remote gaming duty | 21% to 40% | 1 April 2026 |
| General betting duty (remote betting) | 15% to 25% | 1 April 2027 |
| Machine games duty (higher-stakes machines) | 20% to 25% | 1 April 2027 |
Entain said it will keep taking action to limit the impact of the higher taxes. Other operators are already cutting costs. Flutter said earlier this month it plans to cut up to 1,400 jobs in its UK and Ireland business, citing the remote gaming duty rise.
