Betting Groups Entain and Rank Warn of Shop Closures from Proposed Machine Games Duty Rise
Written by Casey Werner · Oct 18, 2026
Betting Groups Entain and Rank Warn of Shop Closures from Proposed Machine Games Duty Rise
Two major UK gambling operators have delivered direct warnings to Chancellor John Healey ahead of the next Budget, highlighting risks tied to potential increases in Machine Games Duty. Entain, which runs Ladbrokes and Coral, along with Rank Group, operator of Grosvenor Casinos and Mecca Bingo, stated that lifting the duty to 40 percent could trigger widespread closures across betting shops and casinos. Those closures would place thousands of jobs at risk and reduce future investment in physical retail locations.
Details of the Industry Warning
Entain and Rank Group referenced the earlier increase in Remote Gaming Duty to 40 percent, implemented in April 2026, as evidence of what further tax changes might produce. Hundreds of betting shops closed and staff positions disappeared following that adjustment, according to figures cited in their communications with the Treasury. The companies argued that repeating similar duty hikes on machine gaming would compound those effects rather than allow recovery in the retail sector.
Observers note that both firms continue to report growth in their UK and Ireland operations, driven largely by online platforms. Entain recorded an 8 percent rise in net gaming revenue for the third quarter, with online channels providing the main contribution. Rank Group presented comparable data showing resilience in digital segments even as high-street venues face pressure from existing cost structures.
Background on Machine Games Duty and Retail Operations
Machine Games Duty applies to gaming machines located in betting shops, casinos, and bingo halls. Current rates stand below the 40 percent threshold now under discussion for possible Budget measures. Entain and Rank Group maintain extensive networks of these venues, employing staff in customer-facing roles that range from cashiers to security and management positions. Any forced reduction in venue numbers would directly affect those employment levels, the operators stated in their letters to the Chancellor.
The Remote Gaming Duty rise earlier this year already prompted operators to reassess physical site viability. Data from that period shows accelerated closures concentrated in regional high streets where footfall had declined steadily since the pandemic. Industry records indicate that hundreds of positions tied to those locations disappeared within months of the duty adjustment taking effect.
Reported Financial Performance Amid Tax Concerns
Despite the warnings over future tax policy, Entain and Rank Group both recorded positive movements in their broader UK-facing revenue streams during recent quarters. Online betting and gaming accounted for the larger share of that expansion, reflecting shifts in customer behavior toward digital channels. The companies emphasized that retail venues still serve distinct customer segments who prefer in-person experiences, particularly for certain machine-based games subject to Machine Games Duty.
Letters sent to the Treasury outlined specific scenarios under a 40 percent Machine Games Duty rate. Projections included reduced capital expenditure on venue upgrades and technology refreshes, alongside potential site rationalization programs. Rank Group highlighted its casino and bingo operations as especially exposed because machine revenue forms a core component of those businesses, whereas Entain pointed to its combined betting shop estate as the area most immediately affected.
Context of Prior Duty Changes and Employment Impacts
The April 2026 adjustment to Remote Gaming Duty established a precedent that operators now cite when discussing Machine Games Duty proposals. That earlier change applied to remote betting and gaming activities, yet it coincided with accelerated decisions to close marginal high-street sites where overall margins had already tightened. Employment data collected after the duty increase showed net job reductions concentrated among part-time and shift-based roles typical of betting retail environments.
Entain and Rank Group presented these outcomes as cautionary indicators rather than isolated events. They noted that further tax pressure on machine gaming would limit the capacity to sustain remaining physical locations, particularly in areas where online migration has already reduced walk-in traffic. The operators stopped short of committing to specific closure targets, instead framing the warnings as assessments of likely commercial responses to higher operating costs.
Chancellor Healey's Position and Upcoming Budget Timeline
Chancellor John Healey received the communications from both companies as part of broader industry engagement ahead of fiscal announcements. No immediate response from the Treasury appears in public records, and the precise measures under consideration for Machine Games Duty remain subject to final Budget decisions. The operators positioned their input as factual submissions on operational realities rather than formal lobbying documents.
Industry analysts tracking the sector have tracked similar patterns following previous tax adjustments, with revenue from physical machines proving sensitive to duty rate changes. Entain and Rank Group data submissions included venue-level performance metrics showing declining machine contributions in certain regions even before any new duty rise takes effect.
Conclusion
Entain and Rank Group have placed their concerns about a potential 40 percent Machine Games Duty rate directly before the Chancellor, citing job losses and venue closures already observed after the Remote Gaming Duty adjustment in April 2026. While their UK and Ireland operations show continued online revenue growth, the companies maintain that retail betting shops and casinos remain vulnerable to further tax increases. The warnings arrive as the government prepares its next Budget, leaving the final treatment of machine gaming taxation to be determined in coming fiscal statements.