Ladbrokes and Coral owner Entain (ENT.L) has warned that new UK gambling taxes will have a “massive impact” on the business, estimated at around £250 million.
Despite the significant financial pressure, the FTSE 100 company stressed it remains committed to investing in the United Kingdom over the long term.
Boss Stella David told the Press Association: “It is very early days but the tax changes are going to have a massive impact. It is likely to be around £250 million.”
David added: “We have really strong mitigation plans so will work through those.”
The rate of remote gaming duty increased sharply from 21% to 40% from the start of April, with an additional new rate of general betting duty also set to be introduced next year.
The tax warnings come just days after Prime Minister Andy Burnham revealed plans to give local councils greater powers to block betting shops from opening in their communities.
The Government proposed reforming the Gambling Act 2005’s “aim to permit” rule, which currently requires councils to look favourably on premises licence applications that meet Gambling Commission standards.
David stressed that Entain’s shops, trading largely under the Ladbrokes and Coral brands, are “valued” by local communities despite the political pressure surrounding the sector.
She also noted that betting shop numbers have been declining in recent years, with Ladbrokes announcing plans to close 45 stores across the Republic of Ireland and Northern Ireland earlier this year.
On a more positive note, Entain reported stronger-than-expected sales and earnings for the first six months of 2026, buoyed in part by the expanded World Cup tournament beginning in June.
Net gaming revenues grew by 5% for the six months to June 30 compared with the same period a year earlier, coming in ahead of analyst expectations.
The company, which also owns Foxy Bingo, said 7% online revenue growth was a key driver, with particularly strong performances recorded in the UK and Australia.
UK and Ireland revenues rose by 8% for the period, with 13% online growth helping to offset the ongoing impact of high street shop closures across the estate.
Gaming revenues in the UK climbed 13% for the half-year, while its sports betting operation recorded an 11% increase over the same timeframe.
Entain said its sports arm was especially boosted by the expanded World Cup, which drove a jump in first-time customers and increased use of its BetBuilder accumulator product.
The company reported underlying earnings of £479 million for the six-month period, down 2% year-on-year but still ahead of market expectations.
David said: “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.”
She added: “This performance reflects our strengthening operations and focused execution which reinforces the resilience of our globally scaled business and its ability to consistently deliver high-quality growth.”
David concluded: “I am confident our disciplined focus on growth and optimisation will deliver strong future cash-generation, and that Entain remains well positioned to be a long-term industry winner.”
