Buzz Bingo Revenue Rises 11% to £241m as Tax Pressures Double Losses

Buzz Bingo reported an 11% rise in group revenue to £241.4m for the 53 weeks ending 17 January 2026, but post-tax losses ballooned to £66.1m from £31.7m, following an £18.5m goodwill impairment linked to the UK government’s April hike in remote gaming duty. Despite revenue growth across both retail and online operations, substantial labour cost increases and tax changes eroded overall profitability.

Group Revenue Grows, But Losses Outpace Gains

Newly filed accounts at Companies House revealed that Buzz Bingo's total revenue climbed to £241.4m, marking an 11% year-on-year increase for the 2025 period. Retail revenue accounted for £192.3m, also up 11%, while online revenue matched that growth at £49.1m. Despite higher turnover, the group’s post-tax loss more than doubled—to £66.1m—mainly due to goodwill impairment and rising financial expenses. Underlying EBITDA dropped by 6% to £39.2m, signalling that improved top-line results were insufficient to offset wider cost pressures.

The Impact of Remote Gaming Duty and Goodwill Impairment

The company booked an £18.5m goodwill impairment in 2025. Management attributed this to a revision in projected cash flows after UK remote gaming duty was raised from 21% to 40% in April 2026. This regulatory change directly hit profitability, with Buzz Bingo's CEO, Dominic Mansour, criticising government policy on tax increases on the EGR Power Seat podcast in August.

“With a government whose agenda was flagged as growth, they were making decisions that were negative to growth,” Mansour said. “The net of it was we pulled back on the amount of investment we made into the UK... They didn’t look at what was happening in the rest of the world. Holland was a perfect example... They increased taxes, they tipped over the other end of what is called the Laffer Curve. And they made less money.”

Mansour's remarks reflect wider industry concerns about the impact of higher taxes on both operator investment and government revenues.

EBITDA and Labour Cost Challenges

Despite growth in customer numbers and club admissions, Buzz Bingo’s underlying EBITDA fell 6% to £39.2m. Rising employer costs—particularly higher National Insurance contributions and above-inflation increases in the National Living Wage—were cited as key drivers. Management flagged that these outlays offset much of the revenue growth from both retail and digital channels.

• Retail admissions across Buzz Bingo's 76 locations reached 4.9 million, a 1% rise
• New customer numbers increased 8% in retail
• Online new customer registrations surged by 30%

Borrowings, Financial Expenses, and Liabilities

Net financial expenses rose to £58m, reflecting Buzz Bingo’s significant borrowings. Facilities extended and expanded by Intermediate Capital Group and Barclays in June 2025 accounted for much of this rise. Consequently, the group's net liabilities widened from £190.4m to £256.5m at period end. These numbers indicate a balance sheet under mounting pressure, with both debt levels and financing costs impacting the operator's strategic flexibility.

Strategic Outlook After the 2026 UK Gambling Duty Increase

Buzz Bingo management linked their results to a “multi-year investment programme to drive growth through enhanced customer experience.” However, facing a tougher tax environment, the company pared back UK investment—citing the need to re-assess future capital commitments.

With regulatory changes reshaping the UK casino sector, and broader financial pressures mounting, the operator’s trajectory now depends on political and tax policy as much as underlying business performance. The full impact of the April 2026 remote gaming duty increase is likely to become clear in next year’s filings, with Buzz Bingo and other UK-facing operators watching government moves closely.

Industry Reactions and Next Steps

The debate over tax policy in the UK gambling sector is heating up, as evidenced by Mansour’s comments referencing the “Laffer Curve” and international examples like the Netherlands. How operators balance growth ambitions with increasing state intervention remains a central question. For now, Buzz Bingo’s latest accounts paint a picture of a business where revenue growth alone will not guarantee long-term viability without structural shifts in cost base or tax treatment.