Entain and Rank warn Budget tax hikes threaten betting shops and jobs

Two of Britain’s largest gambling operators, Entain and Rank Group, have warned that further tax increases in the upcoming Budget could force betting shops and casinos to close, threatening jobs and investment. Despite reporting growth in their UK businesses, Entain and Rank Group issued separate warnings on Thursday. Entain’s net gaming revenue rose by two percent in the third quarter, while Rank Group reported a five percent increase in like-for-like net gaming revenue to £216.1m in the three months to September.

However, Rank Group’s chief executive, Richard Harris, expressed concerns that speculation over additional gambling tax increases could lead to layoffs, reduced venue viability, and job losses. The warnings come as John Healey prepares to present his first Budget on October 28th, where the chancellor is expected to announce a series of tax rises to address higher borrowing costs and spending pressures.

Gambling firms have been under increasing scrutiny over their tax contributions, with speculation that the Treasury may seek additional revenue from the sector. Rank Group has already closed three venues in Swansea, Reading Central, and Sunderland, citing economic unviability. Both companies reiterated their full-year profit expectations, albeit with Entain expecting lower end earnings in its £910m to £960m range.

Meanwhile, the international business of Entain faced challenges, with a four percent revenue decline due to difficulties in Brazil, while BetMGM, its US joint venture, reported a strong third-quarter revenue of $710m and adjusted earnings of $86m.