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Entain CEO: Bonus and Marketing Spend Could Drop if UK Tax Increases

David Cook

Legal Betting Writer

Publish Date: 16/10/2025

Fact checked by: Jordan Noble

Key Points

Entain CEO Stella David has warned of spending cuts
Cuts could be made if UK tax increases
Rank Group CEO says the operator pays its fair share

HM treasury UK

Entain Group has warned bonusing and marketing in its UK operations could be impacted by the introduction of a Remote Betting and Gaming Duty (RBGD) if it is introduced in the November budget.

Entain CEO Stella David mentioned these areas could be hit on the company’s Q3 earnings call, but also said the operator could benefit from consolidation in the industry as a result of the tax, which would lessen Entain’s number of competitors.

Potential tax issues

In April, the government launched consultations on the potential RBGD, which could be announced by Chancellor Rachel Reeves in the budget on November 26 and would be implemented from October 2027 at the earliest.

The RBGD would replace the current system of three separate remote gambling taxes. Various estimates have been made by industry insiders on what the new tax rate would be, with some even predicting it could be as high as 50% of gross profit, but most have estimated it would be in the region of 21% to 25%.

David previously touched on the issue when she told The Sunday Times earlier this month that Entain would have to consider betting shop closures in the UK if the tax comes to fruition.

“A number of levers”

When asked on the Q3 earnings call about potential mitigation measures, David said: “There are a number of levers that we would pull which include being less generous on bonusing odds, maybe a reduction in marketing. These are all things that one does to mitigate against unwelcome tax increases. Obviously, we don't sit on our hands and not plan for that eventuality.”

David warned about the risk of players going to untaxed black market operators in the event of the tax being introduced, using the example of the Netherlands, where illegal gambling operators have a greater share of the market than regulated operators; a situation which has followed increased taxes.

“If the objective is to raise more taxes, then the best opportunity is to reduce the amount of black market that exists in the UK today,” David said. “Over 500 sites exist. They look very professional and they promise great rates, no prior protections, no guarantee you get paid out.”

David was also asked if the potential hikes could drive sector consolidation. David said: “There is always opportunity in a situation where taxes go up that the smaller operators get squeezed. That would be part of our mitigation program against tax increases. These things play out because the brand awareness is lower, the level of marketing goes down, the level just naturally goes in that direction. It's a very good point to call out.”

Entain’s group net gaming revenue (NGR) went up 6% year-on-year for Q3, while UK and Ireland NGR was up 8%.

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Rank Group CEO defence

Separately, Rank Group CEO John O’Reilly argued the operator is paying its “fair share” of tax in the UK already. Speaking on the company’s Q3 results, O’Reilly said: “Speculation regarding tax changes in the upcoming budget is, inevitably, hanging over the business. We are engaged with the Treasury on the implications of tax changes on the viability of our venues, employment levels, future investment and the customer.

“Last year, the group generated £44.6 million in profit after tax, having paid HMRC [His Majesty’s Revenue and Customs] and local authorities £188 million in taxes. The Rank Group, with its strong UK focus, is certainly paying its fair share.”