Entain has publicly voiced concerns over the UK government’s potential plans to rapidly increase sports betting tax rates, warning that such moves could have detrimental effects on the regulated gambling industry. The operator cautions that significant tax hikes might suppress legal markets, incentivize players to move offshore, and ultimately reduce the amount of tax revenue collected by the government.
Rob Wood, Entain’s CFO, pointed to the Netherlands as a cautionary example, where a recent gambling tax increase resulted in an estimated €200 million loss in tax revenue for 2025. He explained that the higher taxes led to a decline in legal gambling revenues and a shift towards unlicensed providers, which undermines consumer protection efforts. This phenomenon, supported by Matej Novota of Casino Guru, illustrates how sudden tax increases can harm the industry by driving players and operators away from regulated channels.
Currently, UK wagering activities are taxed at 15%, but lawmakers are considering raising this rate to 21%, aligning it with the taxation rate for online casinos. Since sports betting margins are generally thinner than those of online casinos, this disparity could further threaten the profitability and sustainability of sports betting operators.
Wood emphasized that Entain contributes over half a billion pounds annually to the UK Treasury and employs over 100,000 people, highlighting the importance of a balanced regulatory approach. He warned that excessive tax hikes could prompt operators to cut costs, reduce odds, or exit the market entirely—outcomes that would harm consumers and reduce overall tax revenues.
In addition to its UK concerns, Entain is managing potential legal challenges elsewhere, including setting aside AU$100 million to cover possible fines from Australia’s financial watchdog, Austrac. Overall, the company advocates for a cautious approach to gambling taxation, emphasizing that well-intentioned increases could unintentionally undermine the industry’s sustainability and government revenue.
