Ladbrokes owner Entain flags fresh hit from second UK tax hike
Ladbrokes owner Entain flags fresh hit from second UK tax hike Oct 28 (Reuters) - Ladbrokes owner Entain ENT.L said on Wednesday it expected an additional £25 million ($33.21 million) cost impact to its UK and Ireland retail business after the UK government raised taxes on the gambling industry for the second consecutive year.
Shares of the betting company rose 5%, however, as the tax increases came in lower than expected.
British finance minister John Healey, delivering his first budget, raised Machine Games Duty, a tax on the net takings from some slot machines, to 25% from 20%
Entain said it was disappointed with the government's decision to increase the tax burden on an "already highly taxed industry"
The latest increases follow last year's budget, when the UK government increased taxes on online gaming such as casino games and slots to 40% from 21% and on sports betting to 25% from 15%
Entain, which had already cut jobs to mitigate the higher costs, said it will continue to take decisive actions to navigate the additional taxes
The company kept its fiscal 2026 guidance and expectation of generating £500 million annual adjusted cashflow in 2028 unchanged
($1 = 0.7527 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Tasim Zahid)
((Yamini.Kalia@thomsonreuters.com))