European Gambling Groups Cut Costs as Tax Pressure Rises

European gambling groups Flutter Entertainment, Entain and FDJ United are reviewing costs and operations as tax pressure rises. An iGaming Business analysis published on 10 November 2026 reported that major operators were adjusting their strategies in response to higher taxes, while gambling taxation also remains under debate in Belgium.

Gambling continues to generate billions of euros in Europe, but operators face higher tax bills while competing for players. Their responses range from reducing expenditure and investing in technology to considering shop closures.

Flutter cuts operating costs

Flutter Entertainment, which owns several gambling brands, has chosen to reduce operating costs rather than cut investment directed at players. New chief executive Dan Taylor said the alternative was to reduce advertising spending and customer benefits; Flutter instead opted to use its scale to absorb part of the tax increases.

The company's reorganisation in the United Kingdom and Ireland provides for approximately 1,400 departures. Flutter also aims to save an additional $500 million by 2029, including through simpler IT systems and organisational structures.

Its revenue in the United Kingdom and Ireland nevertheless rose 4% to $889 million in the third quarter.

UK machine duty puts shops under pressure

Entain, owner of Ladbrokes and Coral among other brands, faces a rise in duty on certain gaming machines in the United Kingdom. The rate is due to increase from 20% to 25% in April 2027.

Morgan Stanley estimates that the increase could reduce Entain's annual profit by approximately £25 million if the company takes no action. Analysts also estimate that around 10% of the group's shops could become unprofitable at the new rate.

Evoke, another UK operator, said it had closed approximately 270 shops over one year. Chief executive Per Widerström cited the employment impact of tax increases among the factors affecting the business.

FDJ United reports lower revenue

French group FDJ United recorded gross gaming revenue of €6.26 billion in the first nine months of 2026, down 2.8%. Revenue fell 5.6% to €2.58 billion. Additional gambling taxes of €62 million partly explain the difference between the two movements.

The United Kingdom and the Netherlands were areas of particular weakness: online gross gaming revenue fell 24.4% and 8.6% respectively. FDJ United is seeking to control spending and simplify operations in an effort to return to growth.

In France, the group brought its sports betting and online poker offerings together under the Unibet brand. Italian operator Lottomatica, by contrast, reported quarterly revenue growth of 5% to €537 million.

Belgium debates casino taxation

Belgium has its own gambling tax debate, although the iGaming Business analysis focused mainly on larger European markets. In February 2026, the N-VA proposed changing the tax treatment of physical venues, as reported by Gambling Club.

The debate includes whether certain regional taxes should be deductible from taxable profit. A reform that took effect in January 2024 abolished that practice.

Belgium's legal gambling market generated approximately €1.62 billion in gross gaming revenue in 2025, according to Gambling Commission figures shared by Gambling Club. That was almost unchanged from 2024. Online casinos grew, while physical venues lost ground.

Governments are seeking additional tax revenue as operators seek to protect profitability, but higher rates do not automatically produce more revenue. In the Netherlands, an analysis found that recent tax increases had raised less than expected, against a backdrop that also included new legal restrictions.