Entain UK Tax Hike: Ladbrokes Owner Braces for a £25 Million Hit
Ladbrokes owner Entain says it expects an extra £25 million ($33.21 million) in costs for its UK and Ireland retail business. The reason is the second UK gambling tax increase in as many years, announced in the Budget. The Entain UK tax hike is real, but the market reacted with relief.
What Changed in the Budget?
Finance minister John Healey delivered his first Budget on Wednesday. He raised Machine Games Duty, the tax on net takings from certain slot machines, to 25% from 20%.
Why Did Shares Still Rise?
Entain’s shares climbed 5%. Investors had feared something bigger, and the increases turned out lower than expected.
Entain’s Reaction
The company said it was disappointed by the decision to add to the tax burden of what it called an “already highly taxed industry.” It also said it will keep taking decisive action to deal with the extra costs. It had already cut jobs to soften the impact of higher taxes.
A Second Year of Higher Taxes
This follows last year’s Budget, when the government raised tax on online gaming, such as casino games and slots, to 40% from 21%. Tax on sports betting went up to 25% from 15%.
Guidance Unchanged
Despite the new costs, Entain kept its fiscal 2026 guidance. It also left unchanged its expectation of generating £500 million in annual adjusted cashflow in 2028.
What Comes Next?
The Entain UK tax hike is smaller than feared, but two years of increases add up. Investors will now watch how well the company’s cost-cutting offsets the higher bills.
