Gambling tax hikes will cause closures and job cuts, say Entain and Rank

Further tax hikes will threaten jobs and venues, two UK gambling firms have warned the Government before the autumn Budget.

Ladbrokes owner Entain and Grosvenor casino parent firm Rank Group have both urged the Government to rethink reported proposals to increase taxes on the sector.

Entain, which also owns Coral, said the UK has become an “increasingly challenging tax environment”.

Stella David, chief executive of the company, said: “Both online and retail are important parts of our business and valued contributors to tax revenues and local communities.

“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 considering an increase in the rate of machine games duty, which is the tax on fruit machines, roulette machines and other slot machines, at the Budget later this month.

It comes after remote gaming duty, the tax on online casino and slots, was increased from 21% to 40% in April this year, following changes announced at last year’s autumn budget.

On Thursday, Entain revealed that net gaming revenues increased by 4% across the group in the third quarter of 2026, compared with a year earlier.

It was boosted by stronger-than-expected trading in the UK and Ireland, despite the “challenging” tax backdrop.

This helped the company offset the impact of tumbling sales in its Brazilian business, which saw a ban on online gambling come into force late last month.

Rank Group runs Grosvenor casinos and Mecca bingo venues (Mike Egerton/PA)

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Meanwhile, Rank Group, which runs Grosvenor casinos and Mecca bingo halls, also warned that duty increases would lead to venue closures.

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.

“HM Treasury recognised these economic arguments last year and, with the right conditions, we believe our casinos and bingo clubs can play an important role in the Government’s growth agenda.”

It came as Rank reported that like-for-like net gaming revenues rose by 5% to £216.1 million for the quarter to September 30.

The rise was linked to 6% growth from its digital business, including a boost from its online Mecca bingo business.

It also reported a 6% rise in net gaming revenues from Grosvenor casino venues, with a 1% increase in visits and a 5% increase in spend per visit.

However, the group also shut three of its casinos, in Swansea, Reading Central and Sunderland, during the quarter.