Entain has become the latest operator to issue a statement relating to the UK's Machine Game Duty (MGD) increase, with CEO Stella David expressing unsurprising disappointment.
The operator has confirmed that the Autmn Budget announcement of a 5% increase in MGD to 25% could cost the company up to £25m ($33.2m). Nevertheless, it has been confirmed that FY26 financial expectations will remain unchanged from the figures outlined in the Q3 report – with Entain stating that it expects to mitigate the impact of the tax increase by 2028 via optimisation initiatives, market share gains and estate rationalisation.
Fascinatingly, Entain's share price has responded positively to the announcement of an MGD rise – a trend consistent across multiple operators in the industry and a handful of UK banks. The confirmation of an unaffected financial outlook, combined with the fact that many in the industry were braced for an MGD rise to 40%, could explain this rise.
Indeed, in the wake of such a drastic 2025 Autumn Budget, it would appear that this year's Autumn Budget has been received by the industry (and more broadly the nation) as contextually minimal. Yet, no industry is going to be happy about back-to-back tax increases, especially with higher taxes already waiting around the corner in April 2027 for the UK.
This sentiment was confirmed by David, who stated: “This is another disappointing decision by the Government. The previous gambling tax increases announced in November last year have already had detrimental consequences across the industry, with the effects being felt by employees, communities as well as customers. These additional tax changes will further compound that damage and push more people into the growing illegal market.
"We will continue to work hard to limit the impact of these changes on our business, our people, and the communities in which we operate. Our priority is to protect jobs wherever possible whilst supporting a sustainable retail presence on UK high streets.”
Reports have also indicated that share prices of multiple UK banks have also increased since the budget announcement
