Entain: Machine gaming duty rise another disappointing decision
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Entain: Machine gaming duty rise another disappointing decision

By Racing TV
Last Updated: Wed 28 Oct 2026
Entain, the UK’s biggest bookmaking presence on the high street, has hit out at the government’s decision to impose further tax rises on the sector, insisting the move will cost jobs and livelihoods as well as push more people into the illegal betting market.
Stella David, chief executive for the group which has Ladbrokes, Coral and BetMGM among others in its portfolio, branded the move in the Budget to push machine gaming duty up to 25 per cent from 20 per cent as “another disappointing decision”.
“This is another disappointing decision by the government,” said David. “The previous gambling tax increases announced in November last year have already had detrimental consequences across the industry, with the effects being felt by employees, communities as well as customers.
Chancellor John Healey announced the gambling tax rises in his Budget on Wednesday (House of Commons/UK Parliament)
“These additional tax changes will further compound that damage and push more people into the growing illegal market.
“We will continue to work hard to limit the impact of these changes on our business, our people, and the communities in which we operate. Our priority is to protect jobs wherever possible whilst supporting a sustainable retail presence on UK high streets.”
Entain estimated the announcement will add £25million to their operating costs and warned they would seek to mitigate that rise by the end of 2028 with a combination of strategies including estate rationalisation or shop closures.
Chancellor John Healey said he was increasing gambling taxes to pay for a high street support package.
While the increase is lower than the 40 per cent which was feared – and campaigned for in some quarters – it is still expected the impact for British racing will mean the loss of millions of pounds in levy and media rights income.
Duty is rising on gaming machines (Liam McBurney/PA)
Healey said: “To pay for this support for our high streets, I am raising taxes on gambling – by increasing Machine Games Duty from 20 per cent to 25 per cent for higher stakes machines, while protecting pubs and seaside arcades.”
Betting machines have become a fundamental operation for bookmakers but the hike in tax could result in betting shops becoming unprofitable, leading to closures due to the slimming profit margins and increasing costs.
The Betting and Gaming Council said it was a “deeply damaging decision” from the government, one which makes the “illegal gambling market more attractive to customers”.
A statement from chief executive Grainne Hurst read: “This is a deeply damaging decision and a blow to the thousands of workers, businesses and communities who depend on Britain’s regulated betting and gaming industry.
“The Chancellor has ignored repeated warnings about the consequences. At 25 per cent, EY projects almost 9,000 people could lose their jobs and almost 1,000 betting shops and casinos could close or be at serious risk. These are real people and families facing the loss of their income and security, in places where alternative work can be hard to find.
“Every betting shop or casino closure means lost livelihoods, more empty premises and another huge blow to our high streets. These venues will not simply be replaced, particularly in places already struggling to attract jobs and investment.
“Higher taxes on the regulated industry also will make the illegal gambling market more attractive to customers, where operators pay no UK tax, contribute nothing to British sport and offer none of the safeguards required of licensed businesses.
“The Chancellor has chosen a tax rise that will cost British jobs, close businesses and hollow out high streets, while handing an advantage to illegal operators. The government cannot ignore the consequences of this decision.”
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