Entain chief urges Treasury caution on tax as Q3 revenue grows 2%

Entain's net gaming revenue rose 2% in the third quarter, with the operator's chief executive, Stella David, telling the UK government to weigh carefully any further tax increases that could put betting shop jobs at risk.

The group said the quarterly uptick reflected the strength and breadth of its international business. Gaming NGR climbed 6%, but a 3% fall in sports betting NGR pulled against that growth. Online NGR overall was up 3%, driven by an 8% rise in online gaming, while online sports betting softened on the back of results favouring bettors and continued disruption in Brazil.

Brazil's online betting and igaming market was shut down on 6 October after President Luiz Inácio Lula da Silva signed a provisional measure banning the sector. Entain, which operated Sportingbet there, reported a 36% slump in Brazilian NGR for the quarter, which it attributed to tighter marketing spend and player engagement amid deteriorating conditions.

The UK and Ireland business fared better, posting 8% overall NGR growth and a 14% jump online, in what Entain called a performance ahead of expectations for the first full quarter under the UK's 40% remote gaming duty. Within that online figure, igaming NGR grew 17% and sports betting NGR rose 3%. Entain credited market share gains in the region to investment and operational execution.

David was among senior industry figures who signed a Betting and Gaming Council letter this week to Chancellor John Healey, calling on him to rule out any increase to Machine Games Duty and to delay the general betting duty rise scheduled for April 2027. Entain has flagged Machine Games Duty, currently levied at 20% on Category B machines in betting shops, as a particular concern ahead of the Autumn Budget, warning of possible shop closures and job losses.

"Both online and retail are important parts of our business and valued contributors to tax revenues and local communities," David said. "We strongly urge the UK government to carefully consider any further gambling tax increases which would threaten the viability of many shops, jobs and livelihoods."

Outside the UK, Entain's international division saw NGR fall 4%, largely because of the Brazilian collapse, while Italy also declined, down 6% year on year. New Zealand, Spain and Canada each delivered double-digit growth, and Australia, home to Entain's Ladbrokes and Neds brands, recorded a 1% rise in online NGR.

Full-year guidance is unchanged from the outlook issued after the Brazilian ban was announced on 25 September. The group still expects online NGR growth of between 4% and 6% for the year, and anticipates underlying EBITDA landing towards the lower end of its £910m to £960m range.

Entain also confirmed it expects the sale of a 20% stake in Entain CEE, the business housing STS and SuperSport, to EMMA Capital to complete in the fourth quarter as part of a phased exit.

David said she was "pleased with our Q3 performance which reflects the strength of our execution and reinforces the resilience of our globally scaled business as well as its ability to consistently deliver high-quality growth."

Shares in Entain, which dropped out of the FTSE 100 in September, were trading around 2% lower at 433p in early London dealing, according to EGR.