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Morgan Lehmann · Oct 18, 2026
UK Gambling Operators Sound Alarm Over Proposed Budget Tax Changes
Major UK gambling companies including Entain, which owns Ladbrokes and Coral, along with Rank Group, operator of Grosvenor Casinos and Mecca Bingo, have issued public warnings to Chancellor John Healey regarding possible tax increases in the October 28 Budget, and these alerts focus particularly on Machine Games Duty for slots plus a planned adjustment to General Betting Duty.
Company representatives stated that further rises could lead to closures of betting shops and casinos while placing thousands of jobs at risk, and the statements arrived even as UK revenue figures showed growth in recent quarters.
Details of the Industry Warnings
Entain and Rank Group highlighted how additional duties on physical gaming machines and betting activities might strain operations across high street locations, yet they also referenced the earlier decision to lift Remote Gaming Duty to 40 percent starting April 2026 as context for their current concerns.
Observers note that the appeals were coordinated through the Betting and Gaming Council, which facilitated letters from multiple operators to the Treasury ahead of the fiscal announcement, and this approach allowed the sector to present a unified position on the cumulative effects of successive tax adjustments.
Revenue Performance Amid Tax Concerns
Entain reported an 8 percent increase in its UK and Ireland net gaming revenue during the third quarter, a figure that stands in contrast to the warnings about future viability under higher duties, and Rank Group similarly pointed to ongoing operational challenges despite steady demand in certain segments.
Figures reveal that while digital and remote channels continue to expand, physical venues face different cost structures that include rent, staffing, and regulatory compliance, and these distinctions form the core of the arguments presented to the Chancellor.
Potential Consequences for Employment and Operations
Executives from both companies emphasized that closures could follow if Machine Games Duty and General Betting Duty rise beyond current levels, with thousands of roles in retail betting and casino environments potentially affected, and they noted that smaller venues in particular might struggle to absorb the added costs without reducing headcount or shutting sites.
Data from the sector shows that UK betting shops and casinos employ significant numbers of staff across the country, and any widespread rationalization would ripple through local economies where these businesses serve as community fixtures, while the coordinated industry letters outlined specific scenarios under different tax scenarios.
Those who've studied the sector know that previous duty changes have prompted operators to review their property portfolios, and the current appeals reference the April 2026 Remote Gaming Duty increase as evidence that additional levies compound existing pressures on the broader business model.
Coordination Through the Betting and Gaming Council
The Betting and Gaming Council played a central role in aligning the messages from Entain, Rank Group, and other members, ensuring the communications to John Healey arrived in a structured manner before the October 28 Budget, and this collective effort allowed smaller operators to amplify their concerns alongside larger groups.
Reports indicate that the letters detailed projected impacts on specific duty categories, including slots under Machine Games Duty and general betting activities, while stopping short of opposing all taxation adjustments and instead advocating for measured approaches that preserve employment levels.
Context of Recent Tax Adjustments
The planned rise in Remote Gaming Duty to 40 percent effective April 2026 already forms part of the fiscal landscape, and industry participants have cited this shift when discussing how further changes in the October 28 Budget might interact with existing obligations, creating layered cost increases across both remote and non-remote operations.
According to statements released by the companies, the combination of physical venue duties and the upcoming remote adjustment could accelerate decisions on site viability, particularly where margins remain thin after accounting for regulatory and operational expenses.
Conclusion
The warnings from Entain and Rank Group to Chancellor John Healey represent a focused industry response to proposed tax measures in the October 28 Budget, centering on Machine Games Duty and General Betting Duty while acknowledging recent revenue gains and the prior Remote Gaming Duty adjustment scheduled for April 2026, and the coordinated letters through the Betting and Gaming Council underscore the sector's emphasis on employment and operational continuity in physical locations.