Gambling operator Entain reports widened annual losses after recording a £488 million non-cash impairment charge due to recent tax increases outlined in the Budget.
The company, which owns Ladbrokes, Coral, and Partypoker, saw losses rise from £461 million to £680.5 million. Higher taxes set to take effect in April target online gaming, including casino games and slots, raising the rate from 21% to 40%, and sports betting from 15% to 25%.
Industry Impact and CEO Response
Chief executive Stella David described the tax hikes as an ‘extremely disappointing decision’ that dramatically increases costs. She warned that the changes would likely generate lower overall tax revenues and harm the sector, potentially leading to job losses.
The Office for Budget Responsibility forecasts gambling tax receipts will climb 4.1% to £3.8 billion this year, reaching £6 billion by 2030/31, with two-thirds of the growth stemming from these Budget measures.
Entain’s Financial Performance and Strategy
Despite the challenges, Entain anticipates the tax changes will cost around £200 million initially. The firm positions itself among a select group of operators capable of absorbing the burden, viewing it as a long-term strategic advantage.
Entain plans to mitigate over 50% of the tax impact starting in 2027 through cost reductions, including cuts to marketing and promotions—up from an earlier estimate of 25%.
Group gaming revenue increased 7%, fueled by its BetMGM joint venture, while underlying earnings rose 8%, surpassing expectations. The company reaffirms its target of £500 million in annual adjusted cashflow from 2028.
