Two major UK gambling companies are warning the government that further tax increases could devastate venues, jobs, and local communities across the sector.
Ladbrokes and Coral owner Entain (ENT.L) and Grosvenor casino parent Rank Group (RNK.L) are both urging ministers to rethink reported proposals to raise taxes ahead of the autumn Budget.
Entain has described the UK as an “increasingly challenging tax environment” for operators navigating both retail and online markets.
Stella David, chief executive of Entain, said: “Both online and retail are important parts of our business and valued contributors to tax revenues and local communities.”
David added: “We strongly urge the UK Government to carefully consider any further gambling tax increases which would threaten the viability of many shops, jobs and livelihoods.”
The government is reportedly weighing an increase in machine games duty, which applies to fruit machines, roulette machines, and other slot machines, at the upcoming Budget.
This follows a significant increase to remote gaming duty on online casino and slots, which rose from 21% to 40% in April this year after changes announced at last year’s autumn Budget.
Despite the difficult tax backdrop, Entain reported that net gaming revenues increased by 4% across the group in the third quarter of 2026 compared with a year earlier.
Stronger-than-expected trading in the UK and Ireland helped the company offset a steep decline in its Brazilian business, where a ban on online gambling came into force late last month.
Rank Group, which operates Grosvenor casinos and Mecca bingo halls, echoed those concerns with a stark warning about the consequences of further duty increases on its estate of venues.
Richard Harris, chief executive of Rank, said: “Speculation regarding the upcoming Budget continues to weigh heavily on investor sentiment, but our message has been clear: any increase to machine games duty will increase costs, reduce venue viability, lead to venue closures and job losses, reduce tax receipts and halt investment.”
Harris also pointed to recognition from the Treasury of these arguments in the previous year, saying casinos and bingo clubs could support the government’s broader economic growth agenda under the right conditions.
Rank reported that like-for-like net gaming revenues rose by 5% to £216.1 million for the quarter to September 30, reflecting resilient consumer demand across its portfolio.
Digital operations were a key driver of that growth, with the segment posting a 6% increase that included a notable contribution from the online Mecca bingo business.
Grosvenor casino venues also delivered a 6% rise in net gaming revenues, supported by a 1% increase in visitor numbers and a 5% increase in spend per visit.
However, the group closed three casino locations during the quarter, shutting sites in Swansea, Reading Central, and Sunderland as it continues to manage its physical footprint.
The closures underscore the real-world pressures already weighing on land-based gambling operators, even before any potential new tax measures take effect.
Both companies are hoping their public statements ahead of the Budget will prompt a rethink among Treasury officials on the pace and scale of gambling sector taxation.
