In April, the UK government enacted significant tax increases on the gambling sector. These include roughly doubling an existing levy on online gambling, as well as introducing a new general duty on remote betting that excludes horseracing and spread betting and takes effect next year. Prior to Chancellor Rachel Reeves' November budget, Entain CEO Stella David cautioned that the increased levies could force store closures and job cuts.
For Entain, the math is brutal. The company estimates the new taxes will add roughly £200 million to its yearly costs before it does anything to offset them. The UK government expects the whole industry to pay an extra £1.1 billion a year by 2031.
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That kind of bill does not leave a lot of room. In a staff email on Wednesday, the company stated that "the environment around us remains challenging, but we have a clear strategy, leading brands, talented people and significant opportunities ahead." An Entain spokesperson added that "these changes will help make Entain a stronger, better business and are further demonstration of our strategic focus on maximizing shareholder value."
The UK gambling industry has faced mounting regulatory pressure in recent years, including stricter advertising rules, player protection measures, and affordability checks. These tax hikes compound an already difficult operating landscape, pushing operators to rethink their cost structures and asset portfolios. Entain, which also owns brands like bwin and partypoker, has been trimming expenses and divesting non-core holdings to shore up its balance sheet.
Entain is not the only gambling company feeling the heat. Evoke Plc, which owns William Hill, struck a deal to be acquired by Ballys Intralot SA for £243 million, following difficulties with its debt load and UK gambling taxes. In March, Evoke revealed intentions to shutter 200 of its betting outlets nationwide.
The squeeze goes beyond taxes. Stricter regulations on advertising, player protections, and affordability checks have made it harder for traditional bookmakers to hold onto customers. Meanwhile, a newer kind of competition has emerged.
Prediction markets like Polymarket and Kalshi let people bet on everything from election outcomes to sports results, often with fewer restrictions. They are not regulated the same way as traditional gambling companies, and that has drawn attention - and money - away from the old guard.
Coral ended its five-decade sponsorship of the Cheltenham horse-racing festival in January. Last month, Entain reached an agreement to sell a 20% stake in its Central and Eastern European business, using the proceeds to pay down debt.
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