The United Kingdom is bracing for a substantial increase in gambling taxes, following Chancellor Rachel Reeves’ announcement in the Autumn Budget. Effective from April 2026, the tax on British revenue from online casino gaming will rise sharply, from 21 percent to a staggering 40 percent. Additionally, the tax on online sports wagers is set to increase from 15 percent to 25 percent, starting a year later in April 2027. However, it’s not all changes across the board, as high street betting shops will not see any alterations in the tax rates for bets or machines. Horse racing bets will remain exempt from the increases, and bingo will benefit from the removal of its 10 percent tax.
The announcement has stirred the major gambling operators in the UK, prompting them to assess the implications and devise strategies to cope with the impending financial burdens. Some companies have expressed serious concerns about the potential advantages this tax hike could hand to unlicensed operators, while others see a silver lining in the government’s decision to spare retail betting, horseracing, and bingo from the tax hikes.
The Betting and Gaming Council, representing Britain’s largest gambling operators, swiftly condemned the tax hikes. The council’s CEO, Grainne Hurst, lamented the move as a “devastating hammer blow” to the tens of thousands of employees working in the sector and the millions of consumers who partake in betting for entertainment.
One of the hardest-hit companies is Evoke, previously known as 888 Holdings. The group’s share price plunged by 18 percent, a reflection of its significant reliance on online gambling. Despite its acquisition of William Hill, which added retail bookmakers to its repertoire, Evoke finds itself grappling with the financial implications of the tax rise. CEO Per Widerström outlined immediate mitigation plans, aiming to counteract roughly half of the tax increase’s impact in the medium term. These plans involve a variety of measures, including retail closures, downsizing marketing efforts, cutting supplier costs, and making adjustments to their offerings. The company had already indicated a potential withdrawal of William Hill from 13 markets.
Widerström further detailed the company’s strategy, which unfortunately includes significant cuts within its UK operations. He indicated that this would likely entail a considerable reduction in investments and, regrettably, could necessitate the dismissal of thousands of employees nationwide. These drastic measures come on the heels of Evoke’s earlier warning in October about the potential closure of up to 200 William Hill betting shops in the UK.
In contrast, Entain, the owner of Ladbrokes and Coral, is anticipating a less severe impact. Entain plans to alleviate about 25 percent of the tax hike through cost-saving measures, such as trimming marketing and promotional expenses. The company projects an EBITDA impact of approximately £100 million in 2026 and £150 million from 2027 onwards. CEO Stella David suggested there might be a silver lining for Entain if the tax hikes force smaller operators out of the market, thereby potentially expanding Entain’s customer base.
Similarly, Flutter, the parent company of brands such as Paddy Power, attempted to present an optimistic outlook. Kevin Harrington, CEO for the UK and Ireland, voiced confidence in the company’s ability to navigate the tax changes. Flutter plans to offset the tax increase through initial mitigation efforts that would cover around 20 percent of the impact, with a goal of increasing this to 40 percent. These efforts include reducing promotional and marketing expenditure, with an expected net impact on adjusted EBITDA of around $235 million in 2026 and $339 million in 2027.
Rank Group, with its focus on land-based gaming through Grosvenor Casino and bingo via the Mecca brand, is relatively shielded from the tax changes. Although it anticipates a £46 million hit on its digital operations, the removal of bingo tax will help counterbalance the overall effect. However, Rank also highlighted that the tax rise is not the only financial challenge it faces. The forthcoming increase in the UK minimum wage by 4.1 percent to £12.71 from April 2026 is projected to add approximately £5.5 million in costs.
Super Group, which owns Betway and Spin, was among the operators less critical of the tax hike, thanks in part to its expanding operations in Africa. CFO Alinda van Wyk projects an adjusted EBITDA impact of about 6 percent for 2026, though she assured that the group has mitigation strategies in place. CEO Neal Menashe emphasized the importance of robust enforcement against unlicensed gambling operators to ensure the tax increase doesn’t unfairly disadvantage compliant businesses. He stressed that government actions must protect the regulated sector’s investments in employment, technology, and responsible gaming.
For service providers, Playtech forecasts an adjusted EBITDA impact in the “high-teens millions of euros” for 2026, before mitigation actions are applied. However, the company remains optimistic, citing its geographic diversity across regulated markets and strong performance outside the UK as buffers against the impact.
As the industry braces for these financial shifts, operators are rallying to devise strategies to absorb the impact while lobbying for stringent enforcement against unlicensed operators to ensure a level playing field.
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