How Entain plans to offset UK gambling tax increases
On 5 March 20246, Entain published its 2025 financial results, which slightly exceeded expectations. The company also stated that group-wide cost-cutting measures would partially offset tax increases in the UK. Following this announcement, the company’s shares rose by almost 8%, according to Reuters.
The company, which owns the Ladbrokes and Coral brands and operates a joint venture with BetMGM, recorded a net loss after tax of £680.5 million for the year. One of the reasons was a one-off non-cash impairment charge of £488 million on its UK business following the government’s decision to raise taxes from April.
Operating profit for 2025 was £1.16 billion
According to the financial report, the company reported an underlying core operating profit of £1.16 billion for 2025, exceeding analysts’ expectations of £1.11–£1.15 billion. At the same time, proposed tax increases in the UK are expected to add around £200 million in annual costs. The company plans to offset around 25% of this amount this year and more than 50% by 2027.
Entain CEO Stella David (pictured) told Reuters that the increased use of AI tools has reduced production costs and the cost of creating digital assets. The company is also implementing measures to reduce marketing and promotional expenses.
Entain’s FY25 summary
Source: Entain.
Chief Financial Officer Rob Wood added that the joint venture with MGM has become a valuable asset for both companies. Peel Hunt analyst Ivor Jones described BetMGM’s business as outstanding, noting that the brand brought in $270 million to its parent companies in 2025.
€800 million bond placement
To refinance part of its debt, extend maturities and reduce financing costs, Entain announced a new bond placement in November 2025 that could raise £703 million (€800 million). The placement was part of a strategy that the company describes as credit-neutral, meaning that there will be no significant increase in total debt.
According to an official statement, the proceeds from the transaction will be used to repay outstanding euro-denominated loans. The company also emphasised that the final size, price and terms of the issue will be determined in accordance with market conditions at the time of placement.
In addition to adjusting its debt profile, Entain intends to diversify its funding sources and reduce its annual interest expenses. These are two key areas of focus for the group in a global scenario of high interest rates and volatility in the capital markets.
Tax increases in the UK are changing the structure of the industry
The 2025 financial results indicate how sharp tax increases in the UK are changing the structure of the industry. Entain’s global scale and diversified portfolio allow the company to better absorb the tax impact than smaller competitors, enabling it to gain market share while its competitors struggle.
Meanwhile, the UK Gambling Commission (UKGC) is preparing for a new phase. In his speech at the Betting and Gaming Council AGM 2026, Tim Miller focused on three key issues: the review of licence fees, a tougher approach to the illegal market and the possible use of cryptocurrencies for payments. The industry considers this to be a key moment.
Tim Miller, Executive Director of the UKGC, began his speech by describing the changes that the British gambling industry will face. He pointed to recent budget measures, the review of regulatory fees and the latest steps to implement the White Paper on gambling law.
He reiterated that the regulator’s core mission remains unchanged: ensuring gambling is fair, safe and free from crime, encouraging early compliance, and maintaining open communication with licensed operators.
This article was first published in Russian on 5 March 2026.
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