- Entain
- 28 October 2026 16:27:25
Source: Sharecast
In his first Autumn Budget, Chancellor John Healey said the government will increase the MGD to 25% from 20%. Shares in gambling stocks rallied on the news, however, as there had been fears the duty could be doubled to 40%.
Entain, which owns Ladbrokes and Coral, among others, said it was "disappointed" by the decision to increase the tax burden "on an already highly taxed industry".
"This latest rise in gambling tax will have a detrimental impact on the wider industry, UK high streets, jobs and livelihoods, compounding the pressures the sector is already facing since the disproportionate tax increases that were announced in November 2025," it said.
As part of government changes announced last November, remote gaming duty rose to 40% from 21% in April, while a new general betting duty remote betting rate of 25%, up from 15%, will take effect from 1 April next year.
Nevertheless, through a combination of estate rationalisation, group-wide optimisation initiatives and potential market share gains, Entain said it expects to be able to fully mitigate the impact of the latest tax increase by the end of 2028.
The company’s FY26 guidance, given earlier this month, remained unchanged, along with its expectation of generating £500m annual adjusted cashflow in 2028.
Chief executive Stella David said: "This is another disappointing decision by the Government. 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. 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."
At 1625 BST, the shares were up 5.4% at 476.90p.
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