Entain puts annual cost of UK machine games duty rise at about £25m for its retail arm

Entain plc has estimated that the rise in UK machine games duty will add roughly £25 million a year to costs in its UK and Ireland retail business, before any mitigating action. The company set out the figure in a statement to the London Stock Exchange on 28 October 2026, the day Chancellor John Healey delivered the Budget.

The duty charged on gaming revenue from type 2 machines in Entain's shops will climb from 20% to 25% from 1 April 2027. Entain said the estimate rests on consensus forecasts for FY27 net gaming revenue in its UK and Ireland retail division. The group said it was disappointed by a move that adds to the burden on an already heavily taxed sector, and argued it would affect high streets, jobs and livelihoods on top of the tax increases announced in November 2025.

Chief executive Stella David said the earlier increases had already damaged the industry, with employees, communities and customers feeling the effects. She said the new changes would compound that harm and push more people toward the growing illegal market. She added that Entain's priority is to protect jobs where possible while keeping a sustainable retail presence on UK high streets.

Entain expects to offset the full impact by the end of 2028 through estate rationalisation, group-wide optimisation initiatives and potential market share gains. It said it believes it has the strongest offering on the high street and sees a chance to win customers as competitors reassess their UK footprint. Its FY26 guidance, issued on 15 October 2026, is unchanged, as is its expectation of £500 million in annual adjusted cashflow in 2028. The company defines that measure as cashflow before working capital, equity dividends, acquisitions and associated financing.

Under the Budget, the higher rate applies to machines with stakes above £1 or prizes above £100, while lower-stake machines stay at the current rate, shielding pubs and seaside arcades. From 1 April 2028, machine suppliers will also be liable for duty on supplier-owned machines operated under profit-sharing arrangements. The government expects the two measures to raise £135 million in 2027/28 and £150 million in 2028/29.

The change follows the online duty increases announced in the November 2025 Budget, including remote gaming duty rising from 21% to 40% and remote general betting duty from 15% to 25%. Other operators are also cutting costs; Flutter said earlier this month it plans to remove up to 1,400 jobs in its UK and Ireland business, citing the remote gaming duty rise.