Entain UKI NGR Increases 6% for Q1 Ahead of Online Tax Increases

Entain grew its UK and Ireland (UKI) net gaming revenue (NGR) 6% year-on-year for Q1, ahead of increased taxation in the UK, with online growth contrasting with a slight decline in retail.

Entain’s UKI online NGR increased 13%, which Entain said was ahead of expectations, although UKI retail was down 1%. UKI gaming NGR went up 8%, sports NGR increased 1% and sports wagers were up 9%. The overall group’s NGR improved by 3%, with online growing 5%, although retail decreased by 3%.

The trading update issued by Entain only mentioned percentage increases and decreases, without revealing specific numbers. However, to give a picture of the scale of revenue Entain generates, its revenue for 2025 was £5.3 billion, up from £5.1 billion for 2024.

Entain CEO Stella David said:

“We entered 2026 with strong momentum which has continued in Q1, with strong volume growth across our diversified portfolio. This further demonstrates our ongoing strategic execution and strengthening operations, and also highlights the growth embedded in our globally scaled business.”

More taxes ahead

This was the last quarter ahead of the initial implementation of increased online taxes in the UK. From April 1, remote gaming duty (RGD), paid on online casino bets, was raised from 21% of gross gaming yield (GGY) to 40%. In addition, from April 2027, general betting duty, paid on online sports bets, will rise from 15% of GGY to 25%; bets on horseracing will be exempt from this.

The decline in retail revenue in the UK, despite being only a slight decrease, points towards a difficult future for Entain’s retail operations. There is consensus among the tier one operators in the UK that there will have to be cuts to retail to account for the increased taxation online.

Shop closures

Last October, one month prior to the increases being announced by Chancellor Rachel Reeves, David said told The Sunday Times Entain would need to review the possibility of shop closures in the UK and that it would have to consider its investment level in the country, dependent on the extent of potential gambling tax increases in the November budget.

In March, reports suggested Ladbrokes, owned by Entain, is to close 39 betting shops in Ireland, putting 226 jobs at risk, as a result of rising labour, energy and property costs. This is not directly linked to the taxes in the UK, but is another sign of a lack of confidence from Entain in its retail business.

Following David’s comments, a company spokesperson for William Hill’s parent company Evoke told The Sunday Times it would also consider shop closures in the event of a hefty tax increase, with as many as 200 of William Hill’s 1,300 betting shops being at risk of being closed down.

There were also reports in October that Flutter Entertainment is to close 57 of its Paddy Power shops in the UK and Ireland, while Betfred Founder Fred Done said he did not see how Betfred’s retail operation could be sustainable “if rates went up to anything like 40%.” It was unclear if Done was referring to RGD specifically, but a 40% rate has turned out to be the reality in that regard.

Entain vs the market

Despite its drop in UKI retail NGR for Q1, Entain claimed its UK retail is outperforming the underlying market supported by growth in gaming (+2%) and volumes (+4%). However, UKI sports NGR dropped 3%.