Entain urges UK government to think carefully about gambling tax rises

Entain urged the UK Government to "consider carefully" any new increases to gambling taxes, arguing that a rise could "jeopardise the viability of many shops, jobs and livelihoods". The plea was made by chief executive Stella David when presenting third-quarter results for the period 1 July to 30 September 2026, when group revenues rose by 2%.

Q3 2026 results and the message on gambling taxes

Entain published third-quarter figures that show growth but also weak points in specific markets. The group said its online business grew by 3%, driven by gaming performance, although that gain was partially offset by sports results with high customer favourability and by ongoing challenges in Brazil.

Revenues in the UK and Ireland rose by 14%, beating market expectations. New Zealand, Spain and Canada posted double-digit growth. Online in Australia increased by 1%, in line with expectations. By contrast Italy fell by 6%, where a strong increase in volume was offset by sports results "favourable to customers". Brazil showed the weakest performance, with revenues -36% in a market that, according to Entain, was increasingly challenging even before the immediate online ban announced on 25 September 2026.

"I am pleased with our performance in the third quarter, which reflects the strength of our execution and reinforces the resilience of our business at scale," said Stella David, chief executive of Entain.

The company reiterated its guidance for fiscal year 2026 (FY26) and said it is confident that its disciplined focus on growth and optimisation will deliver strong cash generation in future.

Why Entain is warning about new gambling tax rises

Entain presented the plea in the context of its integrated business structure: the group operates online platforms and a network of retail outlets. The company argues that both channels contribute local tax revenues and support communities, and that greater tax pressure could erode the profitability of physical shops and jobs.

Stella David linked the quarter's strength to the group's ability to continue investing and operating long term, and emphasised that fiscal policy decisions have immediate operational effects on jobs and shops.

Breakdown by key markets

Entain provided a tour of the main markets where it operates:

• UK and Ireland: revenues +14%, above expectations.

• Global online: revenues +3%, with strong gaming and more neutral sports.

• New Zealand, Spain and Canada: double-digit growth (the company did not disclose exact country figures beyond "double digits").

• Australia (online): revenues +1%, in line with forecasts.

• Italy: revenues -6%, with volume up but sports results "favourable to customers".

• Brazil: revenues -36% prior to the online ban announced on 25 September 2026.

The market detail shows where the company is expanding margin and where it faces regulatory or competitive pressure.

Regulatory and commercial implications for operators and regulators

Entain framed its tax claim at the intersection of public policy and commercial viability. The company did not offer specific policy proposals in its public statement, but its argument is clear: higher gambling taxes would increase pressure on shops and employment.

The explicit reference to the online ban in Brazil, with a 36% fall in revenues prior to the measure on 25 September 2026, illustrates how abrupt regulatory changes can affect the group's numbers.

For operators and suppliers this means fiscal and regulatory decisions can move quickly to financial statements. Finance and regulatory affairs teams will need to quantify proposed measures and prepare impact scenarios for shops and online channels.

What management said about the future and FY26 guidance

Entain reiterated its FY26 guidance when presenting the results and management said the "underlying momentum" of the portfolio underpins its confidence. The company stated that it maintains a disciplined focus on growth and optimisation which, according to Stella David, "will deliver strong cash generation in future" and leave Entain well positioned to be a long-term winner in the industry.

"Both online and retail are important parts of our business and valued contributors to local tax revenues and communities," added Stella David.

What investors and regulators should watch

Investors should follow two lines: comparable revenue trends in markets with double-digit growth and the trajectory in Brazil after the ban announced on 25 September. Regulators and policymakers in the UK will view Entain's plea as a warning about the impact of future tax rises on employment and the retail estate.

For further analysis on regulatory changes and their effect on operators and suppliers, see coverage in the [regulation](/regulation) and [b2b](/b2b) sections.