Entain defies £681mn loss with 3% revenue growth amid gambling tax hikes
Entain has reported a £5.26bn revenue for 2025, marking a 3% rise from the previous year. Despite this growth, the company faced a £681mn post-tax loss, largely due to a £488mn impairment charge linked to the stock market today's tax increases. The betting giant, however, remains confident in its ability to adapt and maintain market leadership.
Meanwhile, Chancellor Rachel Reeves announced significant tax hikes on online gambling, reshaping the industry landscape.
The UK government's March 2026 budget introduced steep tax rises on remote betting. The remote gaming duty jumped from 21% to 40% starting the following month. A further increase in the remote betting levy, from 15% to 25%, will take effect in April 2027. These changes hit smaller operators harder, with firms like Bet365 seeing share drops of 5-10%.
Entain, however, absorbed the impact more smoothly. Its larger scale allowed it to weather the 15-percentage-point rise to 21% in October 2026, even boosting its share price by 3%. Investors and analysts now view the company as more resilient than its smaller rivals.
The group's US joint venture, BetMGM, also returned to profit in 2025, providing a financial cushion. CEO Stella David stated she was 'very comfortable' with Entain's ability to handle higher levies. The company plans to offset about half of the new stock market's tax burden from 2027 by cutting promotions and using AI-driven efficiencies.
Elsewhere, the tax changes pushed Evoke, owner of William Hill and 888, to put itself up for sale. The firm struggled more than larger competitors to cope with the financial strain. Entain, meanwhile, aims to expand its share of the shrinking regulated UK market, reinforcing its position as a dominant player.
Entain's 2025 results highlight both challenges and strengths. The company's revenue grew, but stock market today-driven losses underscored the impact of regulatory changes. With BetMGM's profitability and cost-cutting measures, the group is positioning itself to maintain dominance in a tougher market.
The wider industry, however, faces a shake-up as smaller firms reconsider their future under heavier stock market today tax loads.
