Entain posts £681m loss after UK gambling tax impact

Ladbrokes owner Entain has reported a loss of £681m for 2025 after accounting for the financial impact of new UK gambling tax measures.

The FTSE-listed bookmaker recorded a £488m impairment charge linked to tax increases announced in the government’s November Budget. The charge pushed the company deeper into loss compared with the £461m deficit reported in 2024.

The new duties will affect remote gaming and general betting taxes from April. Operators across the sector have warned the changes could place pressure on margins and reshape competition in the UK market.

Entain had previously estimated the additional tax burden would cost around £200m annually before mitigation efforts.

Revenue continues to grow

Entain reported growth across its core operations despite the loss. Net gaming revenue rose 3% year-on-year to £5.33bn. This was supported by steady performance across online betting and gaming products.

Chief executive Stella David said the business continued to show strong underlying momentum:

“2025 has been a successful year for Entain. We are continuing to drive strong underlying momentum and I am immensely proud of our strategic and operational progress and the results it is delivering.”

However, the tax changes are expected to weigh on earnings over the coming years.

Entain estimates the policy could reduce earnings by around £100m in 2026 and by approximately £150m annually from 2027 after mitigation measures are applied.

BetMGM provides financial boost

One of the strongest contributors to Entain’s results was BetMGM. This is through the joint venture with MGM Resorts International in the United States.

The business reported revenue of $2.8bn for 2025. This represented a 33% year-on-year increase. BetMGM also posted earnings of $220m. For BetMGM, this marked a turnaround of $464m compared with the previous year.

The improved performance allowed BetMGM to return approximately $270m in cash to its parent companies. The payment provided a welcome financial boost for Entain following several years of statutory losses.

Industry faces growing regulatory pressure

Entain’s results come during a period of uncertainty for listed gambling operators in the UK. Many companies are concerned about rising taxes and regulatory changes and how they could affect profitability.

When the UK tax changes were first announced, Entain cautioned that higher duties could risk pushing some players toward unregulated gambling platforms. The company said it plans to offset more than half of the additional tax burden by 2027. It will do this through cost reductions, marketing adjustments and operational efficiencies.

Entain also reaffirmed its long-term target of generating at least £500m in annual adjusted cashflow by 2028.