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

Two major British gambling companies delivered direct warnings to Chancellor John Healey on October 15 about the risks tied to expected tax changes in the October 28 Budget, and those warnings centered on a possible hike in machine games duty that covers slots and similar equipment in betting shops and casinos.

Entain, which operates Ladbrokes and Coral, along with Rank Group, the company behind Grosvenor Casinos and Mecca Bingo, outlined how such an increase could trigger shop and venue closures, place existing jobs in jeopardy, and bring new investment projects to a standstill across the sector.

Details of the Warnings Delivered to the Chancellor

The letters sent by both operators highlighted that further rises in machine games duty would hit physical locations hardest because those sites rely heavily on revenue from gaming machines to cover operating costs and maintain staffing levels, while the companies simultaneously reported solid online growth in the same quarter.

Entain’s UK and Ireland net gaming revenue rose 8 percent in Q3 2026, driven primarily by its online platforms, yet the firm still flagged that higher machine taxes could force difficult decisions on its retail estate despite that positive online performance.

Company Performance Figures Released Alongside the Alerts

Rank Group also pointed to ongoing UK operations that have shown resilience, yet both firms emphasized that their retail businesses face different cost pressures compared with digital channels, and those pressures would intensify if machine games duty moves upward in the coming Budget.

Data from the operators shows that physical betting shops and casinos continue to employ thousands of people across Britain, and any forced closures would directly affect those employment numbers while also reducing the number of venues available to customers who prefer in-person gaming.

Broader Sector Implications Discussed in the Correspondence

Both companies noted that investment plans for new equipment, venue upgrades, and staff training programs could be paused or cancelled if the tax burden on machines increases significantly, because higher duty rates would reduce the capital available for such projects while also squeezing margins at existing sites.

Observers familiar with the industry point out that machine games duty already represents a substantial portion of operating expenses for many high-street betting shops and casinos, and any further adjustment would compound existing challenges around energy costs, staff wages, and regulatory compliance requirements that these locations already manage.

Timing and Context Around the October 2026 Budget

The warnings arrived just two weeks before the scheduled Budget announcement on October 28, giving the Chancellor and Treasury officials time to review the submissions before final decisions are made on tax rates, and industry groups have indicated that similar letters from other operators may follow in the coming days.

Entain and Rank Group both stressed that they support a stable and fair tax framework for the gambling sector, but they argued that abrupt increases in machine games duty could produce unintended consequences such as reduced tax receipts overall if venues close and employment falls, because fewer operating sites would mean lower total contributions to the Exchequer.

Conclusion

The letters from Entain and Rank Group form part of ongoing discussions between the gambling industry and the government ahead of the October 28 Budget, and they focus specifically on the potential effects of machine games duty changes on physical retail operations while acknowledging recent online revenue growth reported by both companies in Q3 2026. Further details on the final Budget measures will emerge on October 28, at which point the sector will learn whether the warned-against tax adjustments materialize.