Gambling tax hikes will cause closures and job cuts, say Entain and Rank. 15th October By PA News Agency Coral and Ladbrokes owner Entain has warned the Government against gambling tax increases (Entain/PA) Further tax hikes will threaten jobs and venues, two UK gambling firms have warned the Government before the autumn Budget. Ladbrokes owner Entain and Grosvenor casino parent firm Rank Group have both urged the Government to rethink reported proposals to increase taxes on the sector. Entain, which also owns Coral, said the UK has become an "increasingly challenging tax environment". Stella David, chief executive of the company, said: "Both online and retail are important parts of its business and valued contributors to tax revenues and local communities. "We strongly urge the UK Government to carefully consider any further gambling tax increases which would threaten the viability of many shops, jobs and livelihoods." The Government is reportedly considering an increase in the rate of machine games duty, which is the tax on fruit machines, roulette machines and other slot machines, at the Budget later this month. It comes after remote gaming duty, the tax on online casino and slots, was increased from 21% to 40% in April this year, following changes announced at last year's autumn budget. On Thursday, Entain revealed that net gaming revenues increased by 4% across the group in the third quarter of 2026, compared with a year earlier. It was boosted by stronger-than-expected trading in the UK and Ireland, despite the "challenging" tax backdrop. This helped the company offset the impact of tumbling sales in its Brazilian business, which saw a ban on online gambling come into force late last month. Meanwhile, Rank Group, which runs Grosvenor casinos and Mecca bingo halls, also warned that duty increases would lead to venue closures. Richard Harris, chief executive of Rank, said: "Speculation regarding the upcoming Budget continues to weigh heavily on investor sentiment, but its message has been clear: any increase to machine games duty will increase costs, reduce venue viability, lead to venue closures and job losses, reduce tax receipts and halt investment. "HM Treasury recognised these economic arguments last year and, with the right conditions, we believe our casinos and bingo clubs can play an important role in the Government's growth agenda." It came as Rank reported that like-for-like net gaming revenues rose by 5% to £216.1 million for the quarter to September 30. The rise was linked to 6% growth from its digital business, including a boost from its online Mecca bingo business. It also reported a 6% rise in net gaming revenues from Grosvenor casino venues, with a 1% increase in visits and a 5% increase in spend per visit. However, the group also shut three of its casinos, in Swansea, Reading Central and Sunderland, during the quarter.

Q3 2026: UK online surge pushes Entain net gaming revenue up 2%. Online NGR was up 3% year-on-year but 8% higher when excluding Brazil Double-digit online growth in the UK helped push group net gaming revenue (NGR) at Entain up 2% during the third quarter, though the recent shutdown in Brazil resulted in a decline in its international business. Reporting in a trading update, Entain did not publish full financial figures, with these due at a later stage when the Q3 data is published in full. However, the group did offer insight into its various business segments. Group online NGR was 3% higher, helped by an 8% rise in gaming revenue but partly offset by a 3% drop in sports NGR and the impact of the situation in Brazil. In late September, President Lula signed an order banning online sports betting and casino gaming in the country. Incidentally, Entain said that excluding Brazil, total online NGR was 8% higher year-on-year. As for retail performance, total NGR for the segment was 2% lower, with both retail gaming and sports betting NGR down 1%. The sports wagering dip came despite a 5% rise in wagers during Q3. "I'm pleased with our Q3 performance," said CEO Stella David. "It reflects the strength of our execution and reinforces the resilience of our globally scaled business as well as its ability to consistently deliver high-quality growth." Entain surpasses expectations in the UK and Ireland. Breaking down the performance further, Entain noted a better-than-expected performance in the UK and Ireland, with total NGR for the region up 8% in Q3. This was driven by a 14% rise in online NGR, with gaming NGR up 17% and sports NGR 3%. There was also marginal growth in retail, with NGR edging up 1% following a 1% rise in both gaming and sports betting NGR. Entain said the growth reflected its "strategic execution and investment" in the region, against the background of an "increasingly challenging" tax environment. Remote Gaming Duty (RGD) increased from 21% to 40% at the start of April, while a new rate of General Betting Duty (GBD) will be introduced at 25% next year. On this, David once again urged the UK government to think carefully over further tax rises on gambling, warning this could lead to further job losses in the sector. Entain recently said as many as 400 customer care jobs could be lost across its business to mitigate the impact of higher UK tax rates. "Both online and retail are important parts of our business and valued contributors to tax revenues and local communities," David said. "We strongly urge the UK government to carefully consider any further gambling tax increases which would threaten the viability of many shops, jobs and livelihoods." 'Disciplined' approach in Brazil. Turning to its international business, NGR was 4% lower overall. Online NGR dropped 3% amid a 5% fall in gaming NGR and 2% decline in sports betting NGR. There were greater declines in retail, with NGR for the international business down 12% in Q3. Entain did not publish NGR for retail gaming activities, but did reveal a 7% decline in sports NGR despite a 13% rise in retail wagers. Reflecting on the international business as a whole, Entain referenced the situation in Brazil, with NGR in the country down 36%. However, it also highlighted "disciplined marketing and player engagement" prior to the ban coming into effect last month. Elsewhere, Australia online NGR was flat at 1%, in line with expectations, while New Zealand, Spain and Canada continued to perform strongly, delivering double-digit online NGR growth. Italy NGR dipped 6%, where strong volume growth was offset by customer friendly football results. In addition, Entain made reference to its discontinued operations in Central and Eastern Europe (CEE). Entain agreed to sell a 20% stake in its CEE joint venture to existing partner EMMA Capital in June. For CEE discontinued operations, NGR was flat year-on-year, with online up 4% and retail down 22%. The group said this reflected double-digit online growth in Poland, though this was offset by an adverse sports margin in Croatia. Entain reiterates full-year guidance. Looking ahead to the rest of the year, Entain reiterated guidance provided after the ban in Brazil came into effect a few weeks ago. This works on the assumption the ban will be upheld for the remainder of 2026. On this, FY26 online NGR is set to increase by between 4% and 6% on a constant currency basis. Excluding Brazil, FY26 Online NGR growth is expected to be at the top end of 5% to 7% range. Underlying EBITDA for the business is set to be at the lower end of the £910m to £960m range, while online underlying EBITDA margin is on track to be between 21% and 22%. As for BetMGM, which published its Q3 results earlier this week, net revenue for the joint venture with MGM Resorts International is still expected to hit between $2.9bn and $3.1bn, and adjusted EBITDA from $300m to $350m. "The underlying momentum we are seeing across our diverse portfolio supports our confidence in reiterating FY26 guidance," David said. "I am confident our disciplined focus on growth and optimisation will deliver strong future cash-generation, and that Entain remains well positioned to be a long-term industry winner."

Entain Q3 revenue rises 2% as Brazil weighs on growth. 15 October 2026 Entain reported a 2 per cent increase in group net gaming revenue (NGR) for the third quarter of 2026, supported by strong growth in the UK and Ireland. However, difficulties in Brazil and unfavourable sports betting results weighed on its international performance. In its trading update on 15 October 2026, Entain, the owner of British betting brands Ladbrokes and Coral, reported a 3 per cent rise in online NGR and an 8 per cent increase in gaming revenue. Sports betting revenue fell by 3 per cent. UK and Ireland deliver double-digit online growth. Entain reported an 8 per cent rise in NGR across the UK and Ireland, with online revenue up 14 per cent. Online gaming revenue grew by 17 per cent and sports betting revenue by 3 per cent. Online volumes also increased by 15 per cent, which the company attributed to continued investment and market share gains. Retail revenue rose by 1 per cent, with like-for-like growth of 3 per cent excluding shop closures. The figures come as UK gambling operators face growing pressure from taxation. Chief Executive Stella David warned against further increases in gambling tax, arguing that they could put betting shops and employment at risk. "We strongly urge the UK Government to carefully consider any further gambling tax increases which would threaten the viability of many shops, jobs and livelihoods," David said. Brazil downturn weighs on international revenue. Entain's international division recorded a 4 per cent decline in NGR, with online revenue down 3 per cent and retail revenue down 12 per cent. Brazil was a significant contributor to the decline, with revenue in the country falling by 36 per cent during the quarter. Entain pointed to difficult market conditions in Brazil ahead of the immediate online gambling ban announced on 25 September 2026. Excluding Brazil, international online NGR rose by 1 per cent. Elsewhere, Italy reported a 6 per cent revenue decline despite a 9 per cent increase in volumes, while Australia's online revenue rose by 1 per cent. New Zealand, Spain, and Canada delivered double-digit online growth. Football results put pressure on betting revenue. Customer-friendly football results in August and September also affected Entain's third-quarter performance, outweighing stronger betting margins recorded in July. The operator faced similar pressure from weaker sports betting margins in the third quarter of 2025. The operator estimated that unfavourable sports results reduced quarterly online revenue growth by approximately four percentage points. Despite higher betting activity across parts of the business, these results limited the revenue retained from sports wagers. Group retail revenue declined by 2 per cent, even as underlying volumes increased by 2 per cent. Full-year guidance unchanged as BetMGM outlook holds. Entain kept its full-year forecast unchanged, expecting online NGR to grow by 4 to 6 per cent. Underlying EBITDA is expected to come in towards the lower end of its GBP910 million (€1.08 billion) to GBP960 million (€1.13 billion) range. The figures are based on constant exchange rates and exclude discontinued operations in Central and Eastern Europe unless otherwise stated. Excluding Brazil, growth is projected to be at the upper end of its 5 per cent to 7 per cent range. The group also expects its online underlying EBITDA margin to finish towards the lower end of the previously stated 21 per cent to 22 per cent range. Meanwhile, BetMGM, the US sports betting and online gaming operator jointly owned by Entain and MGM Resorts International, maintained its full-year net revenue forecast of USD2.9 billion (£2.19 billion) to USD3.1 billion (£2.34 billion) and adjusted EBITDA guidance of USD300 million (£226 million) to USD350 million (£264 million). However, both are expected to be at the lower end of their respective ranges. Entain also confirmed that the sale of an initial 20 per cent stake in Entain CEE, its Central and Eastern European gambling business, remains on track for completion in the fourth quarter. Despite uncertainty surrounding future taxation and regulation, the group, including its 47.5 per cent minority stake in Entain CEE, continues to target GBP500 million (€591 million) in annual adjusted cash flow by 2028. What's making headlines in iGaming? Check out SiGMA's Top 10 News countdown. Subscribe HERE for weekly updates, industry insights, and exclusive subscriber-only offers.