Entain warns UK tax rise would hit bonusing, odds and sponsorships, ‘sports sector will lose out’

Entain warns UK tax rise would hit bonusing, odds and sponsorships, ‘sports sector will lose out’

Summary

Entain reported Q3 group net gaming revenue (NGR) increased 6% year‑on‑year (7% on a constant currency basis), reiterating FY25 online NGR growth guidance of approximately 7% and an online EBITDA margin target of 25%–26%.

Ex‑US NGR rose 4% (5% cc), helped by a 10% uplift in Central and Eastern Europe. UK NGR climbed 8%, driven by online growth (+15%). Brazil saw a 10% NGR decline due to unfavourable sporting results despite higher volumes.

On its earnings call CEO Stella David and CFO Rob Wood warned a potential UK remote gambling tax rise would likely force operators to pull back on bonusing, reduce odds competitiveness, cut marketing and scale back sponsorships — actions they say would hurt the sports sector and benefit the black market. Entain also updated on AUSTRAC proceedings in Australia, noting mediation is ongoing and that its compliance framework is strong.

Key Points

• Group Q3 NGR up 6% YoY (7% cc); FY25 online NGR growth guidance ~7% with 25%–26% online EBITDA margin reiterated.
• Ex‑US NGR +4% (5% cc); UK NGR +8% (online +15%); Brazil NGR -10% due to sporting results despite +14% volume.
• Entain says possible UK remote gambling tax hike would likely lead to reduced bonusing, worse odds, less marketing and fewer sponsorships.
• Management warns sponsorships and sports advertising would be early cuts because of long payback periods, harming the sports sector while advantaging the black market.
• Analysts expect smaller operators to be squeezed; Entain noted up to 25% of the UK iGaming market comprises tier‑3 or smaller operators.
• AUSTRAC legal proceedings in Australia are in mediation; Entain describes its local compliance framework as market leading.

Context and relevance

This matters because the UK government is consulting on a new remote gambling tax framework ahead of the 26 November autumn budget. Any hike would reverberate across operator economics, customer offers and sports sponsorships — potentially accelerating consolidation and shifting market share. For stakeholders in gaming, sports rights, and advertising, Entain’s warnings signal potential near‑term commercial and sponsorship disruption.

Author style

Punchy: Entain is a major market voice and its call‑outs about bonusing, odds and sponsorship cuts should be taken seriously. If policy changes, the details will matter to operators, rights holders and regulators — read the full detail if you work in any of those areas.

Why should I read this?

Short version: Entain’s basically saying a tax hike won’t just hit profits — it’ll mean fewer offers, weaker odds and less sponsorship money for sport. If you’re in iGaming, sports rights, marketing or policymaking, this is one to watch — could change who can compete and who pays for sports.

Source

Source: https://igamingbusiness.com/finance/entain-warns-uk-tax-rise-would-hit-bonusing-odds/