Entain and Rank Group Raise Concerns Over Upcoming Machine Games Duty Increases

UK gambling operators Entain and Rank Group have issued public warnings to the government about further increases in machine games duty, or MGD, ahead of the autumn Budget scheduled for October 28, 2026. Chancellor John Healey is expected to address this area of taxation during that announcement. Both companies, which operate major brands including Ladbrokes, Coral, Grosvenor Casinos, and Mecca Bingo, pointed to risks involving venue closures, job reductions, and lower levels of investment if rates rise again.

These statements come even as the firms reported revenue growth in the third quarter of 2026. Entain recorded a 4 percent rise in group net gaming revenue, while Rank Group saw a 5 percent increase in like-for-like revenue that reached £216.1 million. Performance in the UK and Ireland contributed significantly to those figures, according to company reports. The operators noted that prior tax adjustments, such as the remote gaming duty increase to 40 percent implemented in April 2026, already placed pressure on operations alongside other economic factors.

Details of the Warnings Issued by the Companies

Entain and Rank Group highlighted how additional MGD hikes on slot and fruit machines could accelerate the closure of high-street venues. They emphasized that many betting shops and bingo halls rely on these machines for a substantial portion of their income. Observers note that such locations often serve as community hubs in towns and cities across teh country, and reduced footfall from tax-driven price adjustments might compound existing challenges.

The companies presented data showing that recent duty changes have already influenced investment decisions. Rank Group, for instance, operates Grosvenor Casinos and Mecca Bingo sites where machine revenue forms a core element of daily operations. Entain manages Ladbrokes and Coral outlets wth similar dependencies. Both entities argued that further rises would limit funds available for upgrades, staff training, and expansion projects that support long-term viability.

Revenue Performance Amid Existing Tax Pressures

Despite these cautions, third-quarter results demonstrated resilience in certain segments. Entain achieved the 4 percent group net gaming revenue growth through a combination of UK and Ireland market strength, which offset softer performance in other regions. Rank Group matched this pattern with its 5 percent like-for-like gain, reaching the £216.1 million mark largely due to domestic operations. These outcomes occurred after the April 2026 remote gaming duty adjustment and reflect customer demand that has remained steady in physical venues.

Figures released by the operators also showed how online channels continued to contribute alongside retail locations. The combination allowed both companies to maintain positive momentum while absorbing earlier cost increases. Industry data indicates that machine games duty currently applies to gaming devices in betting shops, casinos, and bingo halls, and any adjustment would directly affect those revenue streams. The firms stressed that sustained growth depends on a stable tax environment that does not erode margins further.

Potential Consequences Highlighted for Venues and Employment

Entain and Rank Group outlined specific risks tied to additional taxation. They stated that higher MGD rates could force the shutdown of marginal sites where machine income covers fixed costs such as rent and utilities. Job losses would follow from reduced staffing needs, particularly in roles tied to machine maintenance and customer service. Investment in new technology or venue refurbishments would likely decrease as available capital shrinks.

Those who have reviewed similar tax adjustments in past cycles point to patterns where operators consolidate locations to protect profitability. The current warnings reference these historical responses and project similar outcomes if the October 28, 2026, Budget includes MGD increases. Government revenue from the sector might rise in the short term, yet the companies suggested that long-term collections could suffer if venue numbers decline and player activity shifts or contracts.

Broader Context of Tax Changes Since April 2026

The remote gaming duty rise to 40 percent in April 2026 already altered cost structures for online betting and casino products. Entain and Rank Group noted that this change, combined with inflation and regulatory compliance expenses, created a cumulative burden. Machine games duty now stands as the next area under consideration, and the operators urged policymakers to evaluate the full impact before proceeding. Data from company filings shows that physical retail continues to represent a meaningful share of overall activity despite online growth trends.

According to reports from ITV News, the warnings were delivered publicly to draw attention to employment and investment implications. Similar coverage in City AM detailed the revenue figures alongside the tax concerns. These accounts confirm that both firms positioned their statements as calls for balanced policy that supports sector sustainability.

Conclusion

Entain and Rank Group have framed their position around the October 28, 2026, Budget as a critical juncture for the UK gambling sector. Their reported third-quarter growth of 4 percent for Entain and 5 percent for Rank Group illustrates ongoing demand, yet the operators maintain that further MGD increases carry risks of venue reductions and employment impacts. The statements provide specific data on revenue performance and prior tax adjustments while focusing attention on the machine games duty category ahead of the Chancellor’s announcement.