Entain has joined the choir of companies to have criticized a rumored and possible increase of gambling tax in the United Kingdom, cautioning that this could have an unintended and adverse impact on the industry as a whole.
Entain warns against the rapid increase in betting tax
The knock-on effect would run deep, though, argues the company, which cautioned that if the government is to move with a tax hike on gambling, it would result in less money collected by the government, and ultimately pass the bill onto the punters.
Entain Chief Financial Officer Rob Wood has evoked a recent mea culpa on the part of the Dutch Gambling Authority, which acknowledged that its tax increase had backfired, and was at odds with the regulator’s stated goal: protecting consumers.
In the Netherlands, the passing of a gambling tax hike could result in €200m in tax revenue lost throughout 2025 alone. Yet, more negatives would stem from this proposal directly, argues Wood. Faced with tougher operating conditions, operators will do the only thing they can – offer worse odds to ensure they stay sustainable. This opinion is reflected by Matej Novota, Casino Guru's Head of Casino Research:
"Every sudden tax increase carries consequences—often with consumers bearing the heaviest burden. The Netherlands shows us exactly how this unfolds: their recent gambling tax hike has triggered a sharp fall in legal revenues and an alarming shift toward unlicensed providers. The UK should heed this warning before jumping into a similar trap."
This would, in turn, drive people offshore, or offer worse options at home in the very least. The specific tax hike would impact sports betting operations specifically, as lawmakers believe that online casinos and betting platforms ought to be taxed at the same rate, at 21%.
Presently, wagering activities are taxed at 15%. It’s important to note that sports betting operations usually post much slimmer profit margins than their iGaming counterparts, too, which could be creating a distorted picture in lawmakers’ minds as to what to do next.
Wood was not past touting Entain’s own tooth. "Our sector contributes around £4 billion every year to the Treasury in the UK, employing over 100,000 people. When you look at Entain we pay over half a billion pounds to the UK Treasury every single year. That makes us one of the top 20 taxpayers in the country," he explained.
The Netherlands serves as a plain example of what to expect
Wood warned that much like in the Netherlands, increasing the tax by too high a rate would only backfire, and ultimately, businesses would take measures to mitigate the impact, which would not be good for anyone, not the betting platforms themselves, and least of all, the punters.
Entain is also facing trouble elsewhere, with the company confirming that it has set aside AU$100m in order to pay for a potential fine that could be issued by the Australian financial watchdog, Austrac.
