Inspired Entertainment posts 4% like-for-like UK growth in Q3 despite Remote Gaming Duty rise to 40%

Inspired Entertainment, a B2B gaming technology supplier, reported that its UK business expanded in the third quarter despite a heavier tax burden. For the three months to 30 September, like-for-like UK revenue rose 4% year over year, even though Remote Gaming Duty went up from 21% to 40% in April.

Management attributed the result mainly to strong growth in operational volumes, which absorbed the effect of the higher duty and produced net positive revenue growth. Total reported revenue for the quarter dropped 29%, from $86.2m to $61.4m. Inspired said this was chiefly the result of selling its UK Holiday Parks division in November 2025 and restructuring its UK Pubs business, not of the tax change.

The company is now preparing for further UK tax changes. Following last month's government announcement, Machine Games Duty will rise from 20% to 25% in April 2027, and Inspired said it is developing cost optimisation measures to consolidate its UK operations. Chief Executive Brooks Pierce described the increase as disappointing but manageable, adding that the UK Budget removes a major overhang and offers a clearer basis for investment and planning. Operators including Entain, Betfred and Flutter had warned before the announcement that higher machine duty could lead to betting shop closures and job losses, which could shrink the retail market Inspired serves. Its customers include Entain, owner of Ladbrokes and Coral, and Mecca Bingo, which is owned by Rank Group.

Inspired points to a diversified footprint, with Greece, Canada and the US among key contributors to full-year revenue. Retail Solutions performed strongly in the UK and Greece, with further opportunities to refresh the installed base in Greece next year. In Interactive, revenue increased 3% year over year as UK volume growth offset the higher gaming tax, and the US business outperformed the wider US iGaming market.

Brazil, which accounted for 5% of total revenue, has affected the outlook. After the country's betting ban, Inspired lowered its FY26 Adjusted EBITDA guidance to between $109m and $112m, from a previous range of $112m to $118m.

Looking to 2027, Executive Chairman Lorne Weil said the company will allocate capital with discipline, prioritising investments with attractive returns and sustainable cash generation, alongside continued debt reduction and share repurchases.