Analyst says UK tax rises could make Entain an M&A target
An analyst at Rothschild & Co Redburn said anticipated UK gambling tax increases could encourage consolidation and make Entain a potential acquisition target for MGM Resorts. The analyst’s base case assumes gaming tax rates of 25% to 30%; the report says the scenario could reduce Entain’s pre-mitigation EBITDA by 12% to 22%, while no new MGM bid has been announced.
Operators and investors may reassess UK exposure and consolidation prospects if the proposed tax increases proceed.