5 million for 2025, widening from £461 million the prior year. According to Entain, the loss was driven by a £488 million impairment charge related to upcoming UK tax rises. In November, Rachel Reeves announced that remote online gaming duty will rise from 21% to 40%, while online sports betting – excluding horse racing – will increase from 15% to 25%.
Ms Reeves said remote gaming was associated with the 'highest levels of harm' across the sector, which is why she was hiking duties. In-person gambling and horse racing taxes were left alone and bingo duty will be abolished. 1 billion for the Government by 2029-30.
Entain’s chief executive Stella David called it an 'extremely disappointing decision' from the Government. ' Entain said it was able to weather the cost rises but other smaller players may disappear from the market as a result. David stated that Entain was likely to grow in the regulated market because it can 'digest such a dramatic increase in taxes' while smaller players may be less able to absorb the costs.
' Entain said it was aiming to mitigate about 25% of the impact of the higher taxes when they come in – rising to more than 50% from 2027. The specific initiatives Entain is using to mitigate the tax impact have not been disclosed, and it is unclear how many smaller players are expected to disappear from the market.