Entain Quantifies £25m Annualised Cost from UK Machine Gaming Duty Rise
Entain estimates a £25m annualised cost to UK retail from the Machine Gaming Duty rise to 25% effective 1 April 2027. The operator expects full mitigation by end-2028 via rationalisation and market gains while holding FY26 guidance and £500m 2028 cashflow target. Stella David cited risks to jobs, communities and illegal market growth.
SCCG Take — Repeated tax hikes are forcing UK retail operators to accelerate cost controls and selective consolidation to protect cashflow. Entain's 2028 mitigation plan signals the timeline and tools required to absorb further fiscal pressure.
Entain has estimated an annualised additional cost of approximately £25m to its UK & Ireland Retail business from the latest UK gambling tax changes in the government Budget.
The increase in Machine Gaming Duty from 20% to 25% takes effect from 1 April 2027. The projection uses consensus estimates for FY27 UK & Ireland Retail net gaming revenue. The company noted the Budget statement and voiced disappointment that the move adds to the burden on an already highly taxed industry, according to reporting by iGaming Future.
Pressure on Retail, Jobs and High Streets
This change follows tax increases announced in November 2025 that had already strained the sector. Entain warned the latest rise will bring detrimental effects on the wider industry, UK high streets, jobs and livelihoods. 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.
David added: “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.”
Mitigation Timeline and Unchanged Targets
Entain anticipates customer recapture where competitors reduce their UK presence, citing its own larger high street offering. The group expects to fully offset the £25m impact by the end of 2028 through estate rationalisation, group-wide optimisation initiatives and potential market share gains.
The company confirmed its FY26 guidance, as stated on 15 October 2026, remains unchanged. Its target of generating £500m in annual adjusted cashflow in 2028, measured before working capital, equity dividends, acquisitions and associated financing, is also unaffected. The update reflects sector-wide concern over the cumulative weight of successive tax rises on retail operations.
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