Entain CEO Stella David has urged the UK Treasury to let logic rather than emotion dictate conversations around potential tax increases in the UK market.
In the company’s Q3 2025 trading update on Wednesday (15 October), Entain reported a 7% year-on-year (YoY) increase in net gaming revenue (NGR).
Online NGR climbed 9% YoY for the group as a whole, with notable performances from the UK and Ireland (online NGR up 15% YoY) and its joint venture with MGM Resorts, BetMGM (up 25% YoY).
Group EBITDA for FY 2025 is expected to reach between £1.1bn and £1.15bn, with a margin of 25%-26%
Speaking on Entain’s analyst call, David said that any discussions around raising taxes should be steered by maths, and not any emotional feeling about the gambling industry.
The Entain CEO also stressed the importance of there being an open dialogue between the industry and the government on the matter.
The right balance
David said: “We have to have a very close dialogue going ahead. We are in close dialogue with the Treasury, and it’s very important that the maths are used rather than emotion to decide what the right course of action is.
“We’re a very highly taxed sector already. I think we pay an effective tax rate of around 65%, therefore we already contribute at a very high level. The industry employs 110,000 people, including 2,400 of our own. It’s about having the right balance here.”
In a recent interview with The Sunday Times, David suggested that Entain may look to divest from the UK market should significant tax increases be implemented.
William Hill parent company evoke also told EGR last week that it was considering shutting retail shops if increased taxes come into effect.
Chancellor Rachel Reeves is due to announce her Autumn Budget on 26 November, with tax increases for the gambling industry expected to be on the agenda.
Currently, general betting and pool betting is taxed at 15% in the UK, with remote gaming duty at 21%.
Thinktank the Institute for Public Policy Research has recommended doubling betting duty to 30% and hiking online casino to 50%.
David went on to highlight the danger of players being driven to black market operators, using the Netherlands as a cautionary tale.
She continued: “It is very well proven that every time you increase tax, the black market increases in size, and you put extra regulation in place that limits opportunity for players.
“If you look at what’s happened in the Netherlands, which is very clearly documented, they put the tax rates up to over 30%. Now it is well known that over 50% of that market has gone to the black market. Therefore, it (raising taxes) has actually backfired.
“If the objective is to raise more taxes, then the best opportunity is to reduce the amount of black market sites that exist in the UK today. Over 500 sites exist. They look very professional and promise great rates, have no prior protections and no guarantee you get paid out.
“From a customer point of view, they pose a real risk and, for the government, they pose a real risk of accelerating the bleeding away of tax revenues to people who pay no tax at all. Let’s work together with the government, the regulator and payment service providers to take the black market sites off the market.”
A report released by the Betting and Gaming Council in September 2024 estimated that £4.3bn is being staked on the UK black market every year.
Don’t miss our annual London Summit on 22 October, where key topics include regulatory shifts in the UK market and the ethical use of AI, data and analytics for a safer and more trustworthy industry. Find out more about attending here.
The post Entain CEO: “Maths rather than emotion” needed to steer potential UK tax hikes first appeared on EGR Intel.
Stella David stresses the need for an ongoing dialogue between the industry and the government on taxation, amid wider calls to reduce the number of black market sites available to players
The post Entain CEO: “Maths rather than emotion” needed to steer potential UK tax hikes first appeared on EGR Intel.