Entain Posts £11.4 Million Loss and Blames the Government’s Gambling Tax Grab
Entain has reported an £11.4 million loss in its latest financial results, blaming the UK government's gambling tax hike as the primary driver. The Remote Gaming Duty rise from 21% to 40% has hit operators hard, but Entain is among the first major players to put a number on the damage.
Entain has warned that the hiked UK Gambling Tax is having a ‘massive impact’ on betting operators after posting a loss of £11.4 million in the first half of 2026.
The Coral and Ladbrokes owner has claimed that the tax grab, which was rolled out in April, could hit firms for as much as £250 million a year.
The financial loss comes despite Entain showing ‘impressive’ growth in some domestic markets, as well as a World Cup which it describes as the ‘biggest football event in Entain’s history.’
Massive Impact
It was back in November that the government announced plans to increase the amount of tax paid by gambling operators.
Of all their changes, it was the near doubling of Remote Gaming Duty – which was rolled out at the start of April – from 21% to 40% that has been the most damaging.
Online casino games are a significant cash cow for operators, but their profits on slots, blackjack, roulette and co have effectively been halved by the tax situation.
In April 2027, a new tax on online sports bets – a rise from 15% to 25% - will also take effect.
The sports division of Entain performed reasonably well in the first half of the year, with an 8% uptick in revenue in the UK and Ireland plus 13% growth online.
Net gaming revenue was also on the rise and grew faster than expectations, so there were plenty of positives for Entain shareholders to take.
The sports betting arm was powered by the success of the World Cup, with Entain reporting a big jump in first-time depositors with their individual brands.
Its Bet Builder tool proved particularly popular, while the number of bets placed from the quarter-finals onwards was nearly double the amount at the same stage of the 2022 edition.
But the £11.4 million loss, allied to a 2% downturn in underlying earnings year on year, were a sobering reality of the challenges facing Entain and their counterparts. Their CEO, Stella David, commented:
I am pleased with Entain’s start to 2026, with strong momentum and volume growth continuing, as well as strong player engagement across the group throughout the World Cup tournament.
Stella David
However, her positivity was becalmed by the remote gambling taxes, which David said had forced Entain to make some challenging operational decisions – which include cutting around 500 jobs, which amounts to 2% of their global workforce.
It is very early days, but the tax changes are going to have a massive impact. It is likely to be around £250 million.
Stella David
Wrong Message
While trading conditions in the online sector are tough enough, things could be about to get a whole lot worse for retail betting.
The Prime Minister, Andy Burnham, has spoken of his desire to revolutionise high street shopping in the UK – with plans to make it harder for betting shops and Adult Gaming Centres to secure approval for new openings.
That includes the scrapping of the ‘aim to permit’ rule, which has made it easier for licensed betting firms to secure approval on premises applications.
However, the PM’s job of demolishing the retail betting empire is already being done for him, with more than 500 bookmakers’ shops closing in 2026 alone as a consequence of reduced footfall and the switch to online bets.
The likes of William Hill, Paddy Power and Betfred have begun slashing the number of premises that they own, although Entain have, for the most part, retained more than 2,000 Coral and Ladbrokes shops across the UK.
By describing betting shops as ‘dodgy businesses’ akin to vape shops and Adult Gaming Centres, David has warned that Burnham is sending the ‘wrong message’ to the public.
And it’s not new shop openings he needs to worry about, but instead the number of closures – and the job losses that come with them.
We have a very strong regulatory framework that we work to and the brutal truth is that the issue for the government isn't that people are opening new betting shops. The issue is that everyone is closing them.
Stella David
Craig is a freelance sports and iGaming writer with over a decade of experience covering the industry. He keeps a close eye on the latest bookmaker news, regulatory updates and market developments, bringing accurate and informed takes for BettingLounge readers.