Entain reported a group-wide loss after tax of £681 million ($905.7 million) for 2025, marking its third consecutive year of significant losses as the betting and gaming operator prepares for a major increase in United Kingdom gambling taxes due to take effect next month.
The London-listed company said the loss includes a £488 million ($649 million) impairment linked to upcoming changes in the UK gambling tax framework. The overall result represents a £220 million ($292.6 million) increase in losses compared with 2024.
The tax change was announced by Chancellor of the Exchequer Rachel Reeves in the Autumn Statement last November. From April 2026, the tax rate on online gaming in the UK will rise from 21% to 40%, a move widely expected to place pressure on operator margins across the sector.
Despite the loss, Entain reported moderate operational growth during the year. Net gaming revenue rose 3% to £5.33 billion ($7.09 billion) from £5.16 billion ($6.86 billion) in 2024, while group revenue also increased 3% to £5.25 billion ($6.98 billion). Underlying EBITDA grew 7% year on year, rising from $1.08 billion to $1.16 billion.
Growth in the company’s core United Kingdom and Ireland segment was driven primarily by online activity. Revenue in the two markets increased 6% to £2.19 billion ($2.91 billion) compared with £2.05 billion ($2.73 billion) a year earlier. Online betting and gaming recorded the strongest expansion, rising 15% year on year to £1.14 billion ($1.52 billion) from £985 million ($1.31 billion).
Retail betting operations in the same markets declined during the period. Revenue from physical betting shops fell 2% to £1.05 billion ($1.40 billion) from £1.07 billion ($1.42 billion) in 2024. Within the Ladbrokes Coral estate, gaming revenue declined 1% while sports betting revenue dropped 3%.
Industry data from the UK Gambling Commission has pointed to declining consumer engagement with retail betting. Both quarterly gross gaming yield statistics and the Gambling Survey for Great Britain indicate falling participation levels in physical venues. The upcoming tax changes may also influence decisions about retail shop closures as operators reassess costs tied to online operations.
International operations delivered modest growth during the year. Revenue outside the United Kingdom and Ireland increased 2% on a constant currency basis to $2.64 billion. Entain’s international footprint includes operations across Europe, North America, South America, and Australia, with the bwin brand serving as a key international asset.
Italy was one of the stronger-performing European markets, with net gaming revenue rising 6% following the launch of a re-regulated market in November 2025. Croatia also contributed to regional growth, helping drive a 5% increase in net gaming revenue across Entain’s Central and Eastern European operations.
Other markets were more challenging. Net gaming revenue in Brazil declined 1% year on year. The country introduced a regulated betting market on 1 January 2025, but discussions around taxation have intensified quickly, creating a more difficult outlook for operators heading into 2026.
Australia also recorded a weaker performance, with net gaming revenue falling 6%. The company attributed the decline to customer-friendly sports results and softer wagering conditions. Regulatory pressure and political scrutiny of the gambling industry are also increasing in the market.
The United States continues to be a notable growth area for Entain through its 50% stake in the BetMGM joint venture. BetMGM generated net revenue of $2.8 billion in 2025, representing growth of 33% year on year. The company reported expansion across both online sports betting and iGaming, with revenue growth of 63% and 24%, respectively.
For 2026, Entain forecasts online net gaming revenue growth of between 5% and 7% on a constant currency basis, excluding the US market. The company expects an underlying online EBITDA margin of 23% to 24%, including efforts to offset approximately 25% of the impact from the UK tax changes.
Stella David, Chief Executive Officer of Entain
Stella David, Chief Executive Officer of Entain, said: “2025 has been a successful year for Entain. We are continuing to drive strong underlying momentum and I am immensely proud of our strategic and operational progress and the results it is delivering.
“Entain’s diverse and globally scaled portfolio of podium positions is more important than ever to ensure we are a long-term winner in our industry. The business has never been in better shape and is well-positioned to not only navigate the tax and regulatory challenges facing our industry, but to seize them as opportunities.”
David added: “I am excited about the future as we evolve our strategic priorities, accelerate our performance, and maintain our focus on sustainable growth and cash generation. I am confident in Entain’s ability to deliver at least £500m of annual adjusted cash flow from 2028.”
The company noted that group-wide underlying EBITDA, UK and Ireland revenue, and adjusted cashflow of £151 million ($200.8 million) all exceeded expectations.
Original article: https://www.yogonet.com/international/news/2026/03/05/117905-entain-reports-905-million-loss-for-2025-as-uk-online-gambling-tax-increase-nears
