Entain estimates UK gaming machine tax rise will cost £25m annually

Entain said it expects the UK government's increase in gaming machine tax from 20% to 25% to add about £25m a year to its costs, before any mitigating measures are applied. The company, which controls brands including Ladbrokes, Coral, bwin, Eurobet, Sportingbet and partypoker, said it was disappointed by the decision to raise the tax burden on the gambling sector.

The tax change raises duties on gaming machines from 20% to 25%, according to the company's account of the government's announcements. Entain said that while it views the further increase in the tax burden negatively, it plans to take measures to reduce the effect on its financial results.

Entain has a significant presence in the UK land-based network through Ladbrokes and Coral, and the company said the tax increase adds further pressure on operating costs. The group said it believes it can contain part of the effects through mitigation measures.