Entain says it will offset £25 million annual gaming‑machine tax by end of 2028

Entain told investors it expects a £25 million annual cost from higher UK Machine Games Duty but intends to fully offset that additional charge by the end of 2028. The company disclosed the figure in a London Stock Exchange statement published on Wednesday alongside Chancellor of the Exchequer John Healey's Autumn Budget announcement. Entain retained its fiscal 2026 guidance and its target of £500 million in annual adjusted cash flow for 2028.

Financial guidance and mitigation plan

Entain calculated the £25 million (£25,000,000) estimate as the expected annual cost to its UK and Ireland retail business before mitigation, using consensus forecasts for fiscal 2027 retail net gaming revenue. The company also provided US dollar conversions in its statement, listing the amount as $33.25 million and the 2028 cash‑flow target as $665 million.

Entain said it will pursue a mix of measures to offset the cost: changes to its shop estate, efficiency initiatives across the business, and seeking market share gains as competitors reassess their UK operations. The operator described its high‑street proposition as “the strongest in the market” and said that customer gains will form only one part of the mitigation.

“Our priority is to protect jobs wherever possible whilst supporting a sustainable retail presence on UK high streets,” CEO Stella David said.

The group did not provide specific numbers for shop closures or redundancies in the update.

Tax changes, timing and wider industry impact

From 1 April 2027 Machine Games Duty on affected Type 2 gaming machines will rise from 20% to 25% on gross gaming revenue. The rate increase applies to machines with stakes above £1 or prizes above £100; machines with lower stakes will retain their current rate. A separate change set for 1 April 2028 will make suppliers liable for duty on supplier‑owned machines operating under profit‑sharing arrangements.

The UK government estimates the two measures will raise £135 million in 2027/28 and £150 million in 2028/29; the statement reported the government’s sterling and US dollar figures for those sums and noted prior online tax changes. Remote Gaming Duty rose from 21% to 40% on 1 April 2026, and general betting duty on remote betting will increase from 15% to 25% on 1 April 2027.

Entain warned the higher tax burden could affect high streets, employment and livelihoods and said higher gambling taxes risk encouraging customers to use illegal operators. The company reiterated that its international portfolio, growth plans and efficiency focus support its decision to maintain fiscal 2026 guidance and the £500 million 2028 adjusted cash‑flow target.

Flutter was named in the update as a competitor that has already announced job cuts: the group plans to cut up to 1,400 jobs across its UK and Ireland business after earlier Remote Gaming Duty changes.

Entain's announcement referenced the Autumn Budget; the regulatory context and timing of the machine duty changes were noted in the same statement and in commentary on the government's expected receipts. For more on the budget and regulation, see Regulation and the latest operator responses in our news coverage.