Rank, Entain and Kenya: an education in gambling tax

Rank, Entain and Kenya: an education in gambling tax

Summary

This article reviews industry responses to looming UK tax changes and contrasts them with international examples. Major operators Entain and Rank warned that higher gambling taxes risk shrinking the regulated market, costing jobs and driving customers to the black market. BetMGM flagged unregulated prediction markets in the US that avoid consumer protections and tax obligations. Meanwhile, Kenya’s recent shift to a 5% tax on withdrawals and certain deposits is highlighted as an alternative approach that could significantly raise revenue without simply hiking headline rates.

Key Points

• Entain says over two-thirds of every £1 of profit is paid in tax and warns further increases will expand the black market.
• Rank Group cautions that speculation about retail tax hikes threatens venue viability, jobs and future investment.
• BetMGM highlights that prediction markets currently operate outside regulated frameworks and do not pay state gaming taxes or meet consumer-protection obligations.
• The Netherlands’ move to a tax rate above 30% has been cited as a cautionary example, with reports of black market share rising above 50%.
• Kenya’s Finance Act 2025 switched to a 5% tax on withdrawals (and some deposits), with the Parliamentary Budget Office estimating revenue could roughly double — demonstrating alternative levers besides simple rate increases.

Why should I read this?

Want the short version? If you run, regulate or invest in gambling businesses, this is essential reading. It’s a quick, punchy briefing on why blunt tax rises could backfire and what smarter alternatives (like Kenya’s approach) might look like — all ahead of a major UK budget that could change the market.

Context and Relevance

The piece is timely: UK industry leaders are publicly engaging the mainstream press and investors as the government prepares its budget. The article places operator warnings in the context of wider regulatory and enforcement challenges — notably how tax policy can shift customers to unregulated operators and damage tax intake long-term. For those tracking policy, compliance, retail operations or market strategy, the contrast between European and African approaches underlines that design and enforcement matter as much as headline rates.

Source

Source: https://igamingexpert.com/features/gamblingtax-lessons/