Entain losses deepen as Budget gambling tax bites
Britain’s new gambling tax regime has delivered an early sting for Entain, pushing the Ladbrokes owner to a wider annual loss even as its core betting business continued to grow.
The FTSE-listed bookmaker said it swung to a loss of £681m for 2025, compared with £461m a year earlier, after booking a £488m impairment linked to the UK gambling tax increases announced in last November’s Budget.]
Separately, Entain has previously estimated the new duties will add around £200m in annualised costs to its UK & Ireland online business before mitigation
The tax changes, affecting remote gaming and general betting duties, will take effect in April and have become a major issue for Britain’s betting sector, with operators warning they could squeeze margins and reshape competition in the market.
Despite the hit, net gaming revenue rose three per cent to £5.33bn.
Chief executive Stella David said: “2025 has been a successful year for Entain. We are continuing to drive strong underlying momentum and I am immensely proud of our strategic and operational progress and the results it is delivering.”
A tougher UK landscape
The Budget tax increase is expected to weigh on earnings over the next two years.
Entain said the changes could reduce earnings by roughly £100m in 2026 and £150m annually from 2027 after mitigation steps such as reducing marketing spend and promotions. The company has been openly critical of the policy.
When the tax rise was announced, David warned the move risked pushing customers towards unregulated betting operators while damaging a sector that contributes billions to the UK economy.
The company now expects to offset more than half of the incremental tax burden by 2027 through cost savings and operational changes.
Online revenue outside the US is forecast to grow between five and seven per cent in 2026.
One of the strongest drivers of performance came from BetMGM, Entain’s joint venture with MGM Resorts Internationalin the US.
The business reported revenue of $2.8bn for 2025, up 33 per cent year-on-year, and delivered earnings of $220m, a swing of $464m compared with the previous year’s loss.
The improvement allowed BetMGM to distribute about $270m in cash to its parent companies, giving Entain a much needed financial boost after several years of statutory losses.
Wider industry under pressure
Entain’s results come amid a period of volatility across listed betting firms.
Last week Flutter Entertainment shares tumbled after the Paddy Power owner missed expectations and issued weaker-than-forecast guidance, pointing to slowing growth in the US sportsbook market.
At the same time, analysts have begun monitoring emerging prediction markets such as Kalshi and Polymarket, which some believe could chip away at the traditional sports betting industry.
For Entain, the immediate challenge lies closer to home. The group must now absorb a tougher UK tax environment while continuing to grow internationally.
David said: “The business has never been in better shape and is well positioned to not only navigate the tax and regulatory challenges facing our industry, but to seize them as opportunities”.
Entain reiterated confidence it can generate at least £500m in annual adjusted cashflow by 2028.