Gambling companies warn UK tax rise will hit jobs, investment and player protection 

Three major betting and gaming groups with significant UK operations have warned that sharp increases in gambling taxes announced in the UK Budget will cut jobs, reduce investment and push customers towards unregulated online markets. 

Evoke plc, which owns brands including William Hill, 888 and Mr Green and is incorporated in Gibraltar, said the decision to raise Remote Gaming Duty from 21% to 40% from April 2026, and introduce a new 25% online sports betting duty from April 2027, would fundamentally change the UK market.  

The company paid £329m in UK taxes and duties in 2024, more than 60% of its UK profits, and expects the higher rates to lead to “substantial and far-reaching changes” including growth in the untaxed black market and reduced investment in UK sport. 

Evoke estimated that, before any mitigating measures, the tax changes would increase its duty bill by about £125m to £135m a year once fully implemented, with around £80m of the impact falling in the 2026 financial year.  

The group expects to offset around half of the increase over the medium term through supplier savings, reduced marketing, retail store closures, operating cost cuts and possible changes to its customer proposition, and has withdrawn its medium-term financial targets while it reviews future UK investment plans. 

“The decision today by the UK government to substantially raise taxes is highly damaging for the economy and consumers,” said Per Widerström, CEO of Evoke. 

“As an industry, we have consistently warned of the significant impact on jobs, investment in the UK, and player protection that these changes would have, yet sadly the Government has chosen not to listen.” 

“These proposals are ill-thought-through, counterproductive, and highly damaging.” 

“It is clear these changes will significantly harm businesses, employees, and customers.” 

“We will begin immediately on executing our mitigation plans, which involve a significant reduction in investment into the UK, and, very regrettably, the likely need for thousands of jobs to be cut up and down the country.” 

“As a result of the actions now required, these tax changes will reduce the overall level of tax the regulated industry pays in the UK, and more importantly it will have a significant negative impact on player protection as these changes will incentivise activity moving to the illegal and dangerous black-market.” 

Entain plc, the global sports betting and gaming group, also criticised the measures, saying they would leave licensed firms offering a less attractive and lower quality product than unregulated operators.  

The company said the higher rates of Remote Gaming Duty and General Betting Duty would add about £200m a year in costs to its UK and Ireland online business before mitigation. 

Entain, which is also licensed in Gibraltar, expects to offset around 25% of the impact through measures such as cutting marketing and promotions, starting immediately, and forecast an earnings impact of about £100m in 2026 and £150m a year from 2027.  

It added that, as a large-scale operator, it anticipated gaining market share as smaller rivals exit the UK market. 

“We are deeply disappointed by today's decision to punitively increase UK gambling taxes, putting at risk an industry which already contributes £7 billion annually to the UK economy and supports over 100,000 jobs across the country,” said Entain chief executive Stella David. 

“Disproportionately increasing gambling taxes will not only have a detrimental impact on our industry but also heightens the risk for customers.” 

“As seen in other countries, punitive tax increases often lead to lower tax revenues overall, whilst also driving players to illegal, unregulated operators with no player protections.” 

“The [UK] Government must now urgently tackle the black market and the consequences of today's decision.” 

“Entain remains well positioned to deliver sustainable growth, underpinned by the Group's diverse geographic footprint and strong portfolio of leading positions in attractive markets.” 

The Rank Group Plc said the increase in Remote Gaming Duty and the abolition of bingo duty, which take effect from April 2026, would reduce its annual operating profit by about £40m before mitigation.  

The group said its UK digital business would face an additional £46m of duty from the rise in Remote Gaming Duty to 40%, partly offset by a £6m benefit from the scrapping of bingo duty. 

Rank is reviewing potential mitigating actions for its UK digital operations in light of profitability, investment plans and what it expects will be a changed competitive landscape.  

It said the 4.1% rise in the hourly UK National Minimum Wage to £12.71, and other employment tax changes, would add about £5.5m in costs but remained within expectations, and that the group continued to operate with a strong balance sheet. 

“The announced increase in Remote Gaming Duty in the UK Budget represents a very significant blow to the regulated betting and gaming industry in the UK,” said John O’Reilly, chief executive of Rank. 

“Whilst we are pleased that the Government has abolished bingo duty which will help to sustain jobs and investment in the land-based sector, the far more significant impact on the Group is the hit to digital profitability.” 

“In the year to 30 June 2025, Rank reported a profit after tax of £44.6m and paid taxes in the UK of £188m.” 

“That burden will now increase by a further £40m and we will look to mitigate the impact where possible.”