UK Gambling Operators Entain and Rank Group Warn Chancellor Over Machine Games Duty Proposals

On October 15 2026 Entain and Rank Group delivered formal warnings to Chancellor John Healey regarding planned increases to Machine Games Duty on slot and gaming machines, and those warnings arrived just weeks before the autumn Budget statement, while both companies continued to report revenue growth in their most recent quarterly results.

Entain which owns Ladbrokes and Coral recorded an 8 percent rise in net gaming revenue across the UK and Ireland together with a 14 percent increase in its online segment, and Rank Group which operates Grosvenor Casinos and Mecca Bingo posted a 5 percent like-for-like revenue improvement during the same reporting period, yet both operators highlighted that higher Machine Games Duty rates could still trigger venue closures and job reductions if the changes proceed as proposed.

Details of the Warnings Issued by the Two Major Operators

Entain and Rank Group presented their concerns in coordinated statements that emphasised the cumulative effect of tax rises on physical venues, and they noted that the proposed Machine Games Duty adjustment would follow the earlier increase in Remote Gaming Duty from 21 percent to 40 percent that took effect in April 2026, so the combined tax burden on different parts of their businesses would rise sharply within a single calendar year.

Company representatives pointed out that many betting shops and bingo halls operate on tight margins once staffing, rent and compliance costs are met, and they stated that further duty increases could force decisions to close marginal locations rather than absorb the additional expense, while reduced capital investment in remaining sites would follow as cash flow tightens.

Revenue Performance Despite Regulatory Pressure

Both groups released their latest quarterly figures shortly before the October 15 statements, and those numbers showed continued expansion in key markets even after the Remote Gaming Duty change, which demonstrates that online channels have grown faster than retail operations during the first half of 2026.

Entain's UK and Ireland net gaming revenue rose 8 percent overall with the online portion advancing 14 percent, whereas Rank Group's like-for-like revenue climbed 5 percent across its casino and bingo estates, and observers note that the divergence between digital and physical performance has become more pronounced since the April duty adjustment.

Context of the Autumn Budget Discussions

The warnings were addressed directly to Chancellor John Healey ahead of the autumn Budget, and they form part of a wider set of submissions from the gambling sector that focus on the interaction between Machine Games Duty and existing employment levels in high-street venues, while the operators stressed that any closures would affect not only staff but also local supply chains and community activities tied to those locations.

Data released alongside the statements indicated that thousands of jobs are currently supported by the retail estate operated by Entain and Rank Group, and company modelling suggested that duty rates above current levels could reduce the number of viable sites by a material percentage within two years, although the precise figures remain subject to final Budget decisions.

Potential Consequences Highlighted by the Operators

Entain adn Rank Group both listed venue closures, job losses and lower investment as direct outcomes that could materialise if Machine Games Duty rises, and they framed these risks against the background of already implemented tax changes that have altered the economics of online gaming since April 2026.

According to the City AM report the operators argued that the combined tax trajectory leaves little room for further retail cost increases without structural adjustments, and they called for the Chancellor to consider the employment footprint of the sector when finalising duty rates.

Conclusion

The October 15 2026 statements from Entain and Rank Group therefore set out a clear position on the proposed Machine Games Duty changes, and they did so while both companies continued to post revenue growth in their latest quarterly results, with the earlier Remote Gaming Duty increase providing the immediate backdrop against which the new warnings were issued. The autumn Budget will determine whether those concerns translate into policy adjustments or whether the duty rises proceed as outlined.