Entain puts UK Machine Games Duty hit at £25M a year

Entain has kept its 2026 guidance after estimating that the UK’s higher Machine Games Duty (MGD) will add about £25 million a year to its retail costs before mitigation.

The Ladbrokes and Coral owner gave the figure in a London Stock Exchange statement on October 28, the day of the Autumn Budget. It expects to offset the full amount by the end of 2028 by rationalizing its shop estate, making savings across the group and potentially gaining market share as competitors reassess their UK presence. The guidance it issued on October 15 still stands, as does its target of £500 million in annual adjusted cash flow in 2028.

Chancellor John Healey is raising MGD from 20% to 25% on machines with stakes above £1 or prizes above £100, starting April 1, 2027. Entain based its estimate on consensus forecasts for UK and Ireland retail net gaming revenue in 2027.

CEO Stella David said:

“This is another disappointing decision by the Government. 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.

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.”

Those earlier measures raised remote gaming duty from 21% to 40% in April 2026. General betting duty on remote betting is due to rise from 15% to 25% in April 2027. Earlier this month, Flutter said it could cut up to 1,400 jobs in its UK and Ireland business, citing the remote gaming duty increase.