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Entain PLC, Flutter Entertainment PLC, evoke PLC and Playtech PLC warned about the impact of gambling duty hikes announced in the UK government budget on Wednesday, both their own results and the industry as a whole. The betting operators said the changes will push players toward black-market operators and impede efforts to promote safer gambling. evoke was the biggest loser among the four, falling 6.6% in London on Thursday morning, having closed down 16% on Wednesday. The owner of William Hill high street betting shops is the most dependent on the UK market among the four. Entain shares were down 0.4%, having closed up 3.1%, and Flutter was up 0.4%, having closed up 2.4%. Both have large US operations. Betting technology provider Playtech was the big winner, as it confirmed its 2026 guidance. Shares were up 7.6% early Thursday, having closed up 5.2% on Wednesday. UK Chancellor Rachel Reeves set out the gambling duty changes in her autumn budget on Wednesday. From April next year, there will be an increase in remote gaming duty in the UK to 40% from 21% and abolition of bingo duty from its current 10%. From April 2027, a new rate of general betting duty for remote betting will be introduced at 25%, excluding self-service betting terminals, spread betting, pool bets and horse racing, replacing the existing 15% general betting duty. The UK government also announced a freeze in casino gaming duty bands in 2026 to 2027. The changes to gambling duties are estimated to raise £1.1 billion for UK government coffers by 2029 to 2030. Entain on Wednesday said it expects an earnings hit of £100 million and £150 million in 2026 and 2027 from the gambling duty changes outlined in the budget. The sports betting and gaming operator, which owns Ladbrokes and Coral, said it was ‘disappointed’ by the increases to UK gambling taxes. Entain fears the tax changes will see regulated operators limited to providing a ‘less attractive and lower quality’ customer offering compared to the unlicensed and untaxed black market. ‘These disproportionate tax increases will have a detrimental impact on the economic contribution of the gambling industry, put jobs at risk, reduce funding for sports, and benefit the black market,’ the firm said in a statement. Entain estimates the changes to remote gaming duty and general betting duty will cost its UK&I online business around £200 million, before any mitigations. Entain expects to mitigate around 25% of this impact through actions including reducing marketing and promotions, commencing immediately alongside the implementation of the tax changes. This equates to an earnings before interest, tax, depreciation and amortisation impact of around £100 million in financial 2026, which Entain said was 8% of the total Ebitda consensus, rising to £150 million from 2027. In 2024, Entain reported Ebitda of £1.09 billion. In addition, ‘as a high-quality scale operator, Entain anticipates benefiting from capturing market share as others are now forced to exit the UK market.’ Entain said it is ‘well positioned to absorb such regulatory and tax changes whilst continuing to deliver sustainable growth.’ Chief Executive Stella David commented: ‘We are deeply disappointed by today’s decision to punitively increase UK gambling taxes, putting at risk an industry which already contributes £7 billion annually to the UK economy and supports over 100,000 jobs across the country. ‘Disproportionately increasing gambling taxes will not only have a detrimental impact on our industry but also heightens the risk for customers. As seen in other countries, punitive tax increases often lead to lower tax revenues overall, whilst also driving players to illegal, unregulated operators with no player protections. ‘The government must now urgently tackle the black market and the consequences of today’s decision.’ evoke on Wednesday said its expects the tax measures to increase its duty cost by between £125 million and £135 million on an annualised basis, once fully implemented from April 2027. It expects a £80 million cost in 2026. Both estimates are before mitigation measures, which it expects to take away about 50% of the gross impact. Evoke, which in addition to William Hill owns the 888 and Mr Green brands, noted that it paid £329 million in taxes and duties in the UK, equal to 60% of its UK profit. ‘We will begin immediately on executing our mitigation plans, which involve a significant reduction in investment into the UK, and, very regrettably, the likely need for thousands of jobs to be cut up and down the country,’ said evoke CEO Per Widerstrom. Playtech on Wednesday said it expects the increases in UK gambling duties to reduce 2026 adjusted Ebitda by up to ‘high-teens millions of euros’ before mitigation measures. However, given its geographic diversity outside the UK, Playtech said it ‘remains comfortable’ it can meet market expectations for 2026. Paddy Power-owner Flutter Entertainment PLC on Thursday said estimated the impact of the higher taxes on its own adjusted Ebitda at $320 million in 2026 and $540 million in 2027. This will be offset by $85 million in mitigation in 2026 and $201 million in 2027, leaving a net negative impact on earnings of $235 million in 2026 and $339 million in 2027. ‘Today’s tax increases are a very disappointing outcome and will have a significant adverse impact on our industry,’ said Kevin Harrington, UKI CEO for Flutter, which also owns the Sky Bet and betfair brands. ‘The chancellor rightly wants to address harm, but these changes will hand a big win to illegal, unlicensed gambling operators who will become more competitive overnight. These black market operators don’t pay tax and don’t invest in safer gambling.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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