Entain Outlines Response To Higher UK Gambling Duties
Entain has outlined a new £50m cost-saving plan designed to mitigate the financial impact of rising gambling taxes in the UK, as the Ladbrokes and Coral owner prepares for significant regulatory changes over the next two years.
The strategy was revealed during the operator’s latest financial update, where leadership confirmed the savings target had doubled from an earlier £25m plan. The revised target is intended to reduce the financial pressure created by upcoming increases to remote gaming and remote betting duties.
Response To Higher Duties
The UK government confirmed in its Autumn Budget that taxes on online gambling operators will rise sharply. Remote Gaming Duty, which applies to online casino products, is set to increase from 21% to 40% starting in April 2026. A separate duty on remote betting is also due to rise from 15% to 25% beginning in April 2027.
These changes are expected to increase costs significantly for operators with large online businesses. Industry analysts estimate the policy could generate around £1.1bn in additional tax revenue for the government by the end of the current parliamentary term.
Entain, which operates brands including Ladbrokes, Coral, bwin and PartyPoker, has been among the companies most vocal about the potential impact of the reforms. The operator has previously warned that higher taxes could affect several aspects of the industry, including marketing spend, sponsorship activity and customer promotions.
Mitigation Measures
According to the company, the £50m savings plan will be achieved through operational efficiencies and internal cost optimisation. The initiative forms part of a broader effort to protect profitability as the new tax structure comes into force.
Executives said the operator’s scale and international footprint should help it absorb the impact more effectively than smaller competitors. The company also expects to continue expanding internationally as part of its long-term growth strategy.
Alongside the cost-saving plan, Entain has indicated it is exploring opportunities in other regulated markets. The group recently confirmed it is seeking multiple iGaming licences in New Zealand as the country prepares to launch a regulated online gambling framework.
Industry-Wide Pressure
Entain is not alone in preparing for the financial effects of the UK’s new tax framework. Several major operators have warned that the higher duties will reduce earnings and could reshape competition in the regulated market.
Analysts have suggested that larger operators with diversified international portfolios may be better positioned to absorb the tax increases, while smaller companies could struggle to maintain profitability.
Some industry stakeholders have also warned that higher tax rates risk driving some consumers towards unregulated gambling websites, a concern that regulators and policymakers are likely to monitor closely as the reforms take effect.
For Entain, the focus now is on operational efficiency and market expansion as the UK gambling sector enters a period of significant regulatory and financial change.
