Entain and Rank Group Flag Risks from Machine Games Duty Hikes in Autumn Budget

Entain, the company behind Ladbrokes and Coral, along with Rank Group which runs Grosvenor Casinos and Mecca Bingo, have delivered direct warnings to Chancellor John Healey about further increases in Machine Games Duty on slot machines and similar products, and those alerts arrived ahead of the upcoming Budget where such changes remain under consideration. The operators point out that higher duties could trigger a wave of betting shop and casino closures, along with associated job losses and cuts to future investment plans, even as both companies posted revenue gains across the UK and Ireland during the third quarter of 2026. The statements from the two firms come at a moment when the sector continues to absorb the effects of previous tax adjustments, including the near-doubling of Remote Gaming Duty to 40 percent that took effect in April 2026. Entain recorded an 8 percent rise in overall revenue for teh quarter while its online operations grew 14 percent, and Rank Group achieved 5 percent like-for-like growth in the same period, yet executives at both companies still chose to highlight downside risks tied to any additional levy on land-based machines.

Details of the Warnings Delivered to the Chancellor

Entain and Rank Group each contacted the Treasury to outline how an uplift in Machine Games Duty would affect their high-street operations, and the correspondence stressed that margins on physical gaming machines already operate under tight conditions following earlier duty adjustments. Observers note that the firms framed the potential tax move as a direct threat to hundreds of locations that employ thousands of staff, while also reducing the capital available for refurbishments and technology upgrades that keep venues competitive.

Data from the companies shows that machine gaming contributes a substantial share of profits at betting shops and casinos, and any duty increase would narrow those returns further. Rank Group in particular operates a large network of Grosvenor Casinos where slots form a core revenue stream, whereas Entain maintains extensive Ladbrokes and Coral outlets that rely on similar products to sustain footfall.

Revenue Performance Amid Existing Tax Pressures

Despite the earlier Remote Gaming Duty rise, Entain and Rank Group both delivered positive results for the three months ending September 2026, and those figures cover combined UK and Ireland markets. Entain’s online segment expanded notably while its retail estate showed more modest movement, and Rank Group reported steady like-for-like improvement across its casino and bingo venues. The growth occurred against a backdrop of higher operating costs that followed the April duty change, demonstrating that certain digital channels retained momentum even after the tax adjustment.

Figures released by the operators indicate that customer demand for online products continued to rise through the summer months, while physical venues faced slower recovery in some regions. The contrast between channels highlights why the companies view any new Machine Games Duty increase as especially damaging to teh retail side of the business, where overheads remain higher and flexibility to offset costs proves more limited.

Context Around Machine Games Duty Proposals

Chancellor John Healey has faced calls from industry groups to reconsider further rises in duties on gaming machines, and the BGC-commissioned EY analysis on Machine Games Duty impacts has been referenced in coverage of the current debate. That analysis examines how incremental tax changes could alter operator behaviour, including decisions on site numbers and staffing levels. Entain and Rank Group have aligned their public statements with those broader concerns, noting that closures would follow quickly if duty rates move higher without corresponding relief elsewhere.

The warnings arrive in October 2026, just weeks before the Budget statement, and the timing allows the Treasury to weigh the operators’ submissions against revenue targets. Both companies have already restructured parts of their operations since the Remote Gaming Duty increase took hold, and they argue that additional pressure on machine income would accelerate that process rather than allow stabilisation.

Potential Consequences Outlined by the Operators

Entain and Rank Group have indicated that forced closures would reduce the overall number of betting shops and casinos across Britain, and they have linked those reductions directly to lower employment in retail and hospitality roles. Reduced investment follows as a secondary effect because lower margins limit spending on property upgrades and new game content that attract customers. The operators have not quantified exact job losses in their latest statements, yet they have emphasised that the cumulative impact of successive tax changes leaves limited room for absorption without structural contraction.

Those who track the sector observe that similar warnings preceded earlier duty adjustments, and the current correspondence repeats themes around long-term viability of high-street gambling venues. The focus remains squarely on Machine Games Duty rather than broader corporate tax measures, and the companies have presented their revenue data as evidence that growth alone cannot offset further targeted increases on physical machines.

Conclusion

Entain and Rank Group have now placed their concerns formally before Chancellor John Healey, and the upcoming Budget will determine whether Machine Games Duty rates rise as proposed or remain unchanged. The operators continue to report revenue growth in the current tax environment, yet they maintain that additional duty on gaming machines would shift their operating model toward fewer sites and reduced headcount. The Treasury has received the correspondence, and industry participants await the final decisions that will shape the next phase of tax policy for land-based gambling in Britain.