Entain ‘deeply disappointed’; to cut marketing spend in the UK

• The UK government is raising the Remote Gaming Duty from 21% to 40% starting April 2026.
• Entain estimates a £200 million annualised cost before mitigations, with earnings hits of £100 million in 2026 and £150 million from 2027.
• The company plans to mitigate 25% of the impact through reduced marketing and expects market share gains as competitors exit.

Entain plc has expressed disappointment over the UK government’s decision to increase gambling taxes in its 2025 Budget, estimating an annual additional cost of around £200 million for its UK and Ireland online business.

The changes include raising the Remote Gaming Duty from 21% to 40%, effective April 2026, alongside a rise in General Betting Duty for remote betting from 15% to 25% starting April 2027.

Company mitigation plans

The company intends to mitigate a quarter of this effect by reducing marketing and promotional spending starting immediately with the tax implementation.

Chief Executive Officer Stella David stated:

“We are deeply disappointed by today’s decision to punitively increase UK gambling taxes, putting at risk an industry which already contributes £7 billion annually to the UK economy and supports over 100,000 jobs across the country.”

She added:

“Disproportionately increasing gambling taxes will not only have a detrimental impact on our industry but also heightens the risk for customers. As seen in other countries, punitive tax increases often lead to lower tax revenues overall, whilst also driving players to illegal, unregulated operators with no player protections.”

From 21% to 40%

The UK government announced steep hikes in Remote Gaming Duty (RGD) and General Betting Duty (GBD) as part of its 2025 Budget. The RGD, which applies to online casino games, bingo, and poker, will nearly double from 21% to 40%.

Meanwhile, the GBD for online sports betting, excluding horse racing, will rise from 15% to 25%. These changes come into effect in April 2026 and April 2027, respectively. The government expects to raise £1.1 billion from these duty increases by 2029-2030.

Entain plans to reduce marketing spend

Entain estimates the tax increases will add approximately £200 million annually in costs before any mitigation efforts, translating into an earnings before interest, taxes, depreciation, and amortisation (EBITDA) impact of about £100 million in 2026 (8% of consensus FY26 EBITDA) and £150 million from 2027 onwards.

Despite the financial burden, Entain expects to attract market share as smaller and less efficient competitors leave the UK market.

The firm warned that the tax hikes could harm the economic contribution of the gambling industry, put jobs at risk, reduce funding for sports, and encourage migration to unregulated black-market operators without player protections.

Looking ahead

The tax changes represent a major challenge for UK operators, prompting strategic adjustments such as scaling back marketing efforts. While Entain remains confident in its diversified global footprint and market positions, the increased tax burden will likely affect profitability and investment in the UK market.

Operators and regulators will need to balance fiscal requirements with protecting the regulated gambling environment and safeguarding consumer interests.

This development marks a pivotal moment for the UK gambling industry, with potential ripple effects on competitors, regulators, and investors focused on sustainable market growth and avoiding black-market expansion.

Source: Entain official statement