What is Entain doing to mitigate the UK remote gambling tax hike?
Entain has established a £50 million ($66.2 million) fund specifically to mitigate the financial impact of the UK's remote gambling tax increase that took effect on April 1. The tax hike raised rates from 15% to 25% for online sports betting and from 21% to 40% for online casino operations, directly affecting Entain's major brands including Ladbrokes and Coral sportsbooks, as well as PartyCasino and PartyPoker platforms. During the FY25 earnings call, CEO Stella David revealed this contingency fund as part of broader cost-saving measures to maintain profitability despite the increased tax burden. The company is focusing on improving cash generation with a goal of delivering £500 million ($662 million) in annual adjusted cash flow starting in 2028. Additionally, Entain is working to optimize marketing rates as a percentage of Net Gaming Revenue (NGR) and improve cost of sales efficiency. Despite these challenges, Entain reported strong performance with 15% online growth in its core UK & Ireland market last year, driven by 18% growth in NGR, demonstrating the company's resilience in navigating regulatory changes while pursuing international expansion opportunities like their New Zealand iGaming initiative.
📖 Read the full article: BetMGM Co-Owner Entain Bets Big on New Zealand iGaming