Entain Says UK Tax Hike Is Boosting Its Market Share, Even as Profits Take a Hit

Entain, the parent company of Ladbrokes and Coral, says the United Kingdom’s steep increase in remote gaming tax is helping it take market share from competitors, even as the higher levy squeezes its own bottom line. The gambling group absorbed a £56 million hit to first-half earnings before interest, tax, depreciation and amortization (EBITDA) from the tax change, according to figures reported by Gambling Insider, with the full six-month impact still to land in the second half of 2026.

The UK’s remote gaming duty jumped from 21 percent to 40 percent on April 1, 2026. Because the increase only applied for three of the six months covered by Entain’s first-half results, the company says the more significant financial pressure is still to come as it faces the higher rate for a full half-year period.

Rivals’ disruption creates opening

Speaking on Entain’s H1 earnings call, chief financial officer Michael Snape said the tax increase has scrambled the competitive landscape in the UK, and Entain has been positioned to exploit it. “The tax obviously steps up in the second half of the year, and that has created a huge amount of disruption in the UK market, which we have been taking advantage of,” Snape said. “We are gaining market share. We are growing really nicely.”

Entain’s UK online net gaming revenue rose 13 percent in the first half, split evenly between gaming (up 13 percent) and sports betting (up 11 percent). Its retail arm also outperformed the broader market for an eighth consecutive quarter. Chief executive Stella David said the company’s scale and diversified operations leave it “well positioned to capture potential opportunities as the wider market adjusts to the higher tax regime.”

Management cautioned, however, against assuming the momentum will simply carry through the rest of the year. “You cannot predict what that competitive environment looks like in the second half of the year,” Snape said. “So that is why we have taken a more balanced view.” Entain did not raise its full-year guidance despite the strong first-half showing, citing the coming full-year tax impact, planned marketing investment and uncertainty in some international markets.

Cost cuts, not retreat

Entain is targeting £100 million in net annualized run-rate savings by the end of 2027 to offset at least half the EBITDA impact of the tax hike, building on earlier plans to mitigate roughly a quarter of the increase in 2026. The company has already cut 500 roles and introduced product and technology efficiencies expected to reduce capital spending as well.

Snape framed the cuts as reallocation rather than austerity. “This isn’t defensive cost-cutting or a reduction in investment,” he said. “It’s capital reallocation. We’re freeing up cash to reallocate exclusively into high-returning growth opportunities.” Overall marketing spending is still expected to rise this year, he added, as Entain looks to sustain momentum into 2027.

Global picture, including gains in Canada

Group-wide, Entain’s net gaming revenue rose 5 percent on a constant-currency basis, while underlying EBITDA slipped 2 percent year-over-year to £479 million, as UK tax costs outweighed the revenue growth. The company posted a loss after tax of £11.4 million — an improvement of £74 million on the prior year — while adjusted diluted earnings per share fell 19 percent to 20.3 pence.

International online growth included 13 percent in Australia, 28 percent in Spain, 21 percent in New Zealand and 11 percent in Canada, where Entain’s operations include BetMGM, its joint venture active in Ontario’s regulated iGaming market. Brazil online revenue fell 25 percent, which the company attributed largely to unfavourable sports betting margins.

Entain ended June with £3.6 billion in net debt and leverage of 3.1 times EBITDA, and declared an interim dividend of 10.3 pence per share, up 5 percent from a year earlier. For the full 2026 year, the company maintained its guidance of 5 to 7 percent online revenue growth at constant currency and group EBITDA of £910 million to £960 million.

For Ontario players and operators watching the global iGaming landscape, Entain’s UK experience is a reminder that tax policy shifts can reshape competitive dynamics quickly. Ontario’s regulated operators, including BetMGM, continue to be required to offer responsible-gambling tools such as deposit limits and self-exclusion through iGaming Ontario’s framework, regardless of shifts in international tax and revenue pressures.