UK Betting Firms Entain and Rank Group Highlight Risks from Potential Machine Games Duty Increases

Entain, the owner of Ladbrokes and Coral, along with Rank Group, parent of Grosvenor Casinos and Mecca Bingo, issued warnings on October 15 2026 about further tax rises, especially on Machine Games Duty for slot and fruit machines, as preparations advanced for Chancellor John Healey’s autumn Budget scheduled for October 28. The firms outlined potential outcomes such as multiple betting shop and casino closures, job losses, and lower levels of future investment while also presenting data on current trading performance that showed continued resilience in their UK operations.

Details of the Warnings Issued by the Companies

Entain and Rank Group addressed the government directly ahead of the Budget, stressing that any additional increases in taxation could disrupt the stability achieved after the remote gaming duty adjustment that took effect in April 2026 when the rate rose from 21 percent to 40 percent. The companies noted that Machine Games Duty, which applies to gaming machines in betting shops and casinos, represents a key area of concern because further hikes might accelerate venue rationalisation programmes that have already been underway in parts of the high street sector.

Rank Group reported that its like-for-like net gaming revenue reached £216.1 million for the quarter ending September 30, reflecting 5 percent growth compared with the prior year period, while Entain recorded 4 percent group-wide net gaming revenue growth with the UK and Ireland segment advancing 8 percent and its online operations increasing 14 percent. These figures formed part of the trading updates released around the same time as the tax warning statements.

Company Performance Figures Released in October 2026

Entain’s Q3 trading update, available on the London Stock Exchange, detailed the 4 percent overall net gaming revenue rise and the stronger performance in domestic markets where UK and Ireland operations grew by 8 percent while online revenue climbed 14 percent. Rank Group separately confirmed its 5 percent like-for-like increase to £216.1 million for the three months to September 30, indicating that customer spending on gaming activities remained steady despite the earlier remote gaming duty change.

Both organisations emphasised that these growth numbers occurred against the backdrop of the April 2026 remote gaming duty increase, yet they cautioned that the cumulative effect of multiple tax rises could still produce venue closures and associated employment reductions. The statements made clear that investment decisions for new sites and technology upgrades might be scaled back if Machine Games Duty rates were adjusted upward in the forthcoming Budget.

Context Surrounding the Autumn Budget Discussions

Chancellor John Healey’s October 28 2026 Budget represented the next fiscal event after the April duty change, and industry participants used the intervening months to present data on operational resilience alongside forecasts of potential negative consequences from additional taxation. Entain and Rank Group positioned their comments as contributions to the policy debate, highlighting employment levels supported by betting shops and casinos as well as the capital expenditure programmes that maintain and modernise gaming facilities across the UK.

The warnings focused specifically on Machine Games Duty because this levy directly affects physical machines located in high street venues, where margins have already faced pressure from regulatory and tax developments in recent years. Company statements indicated that widespread closures would follow if duty rates increased beyond current levels, while reduced investment could limit the introduction of newer gaming products and venue refurbishments.

Conclusion

Entain and Rank Group delivered their coordinated messages on October 15 2026, combining evidence of net gaming revenue growth with explicit references to the risks of further tax measures ahead of the October 28 Budget. The reported figures showed group growth of 4 percent for Entain and 5 percent like-for-like growth to £216.1 million for Rank, alongside stronger UK and online segments, yet the companies maintained that these trends could be undermined by increases in Machine Games Duty. The statements remain on record as the government prepared its fiscal announcements.