Entain and Rank warn Budget taxes could threaten venues and jobs

Entain and Rank Group warned that further gambling tax increases could put betting shops, casinos, jobs and investment at risk. Their warnings came as both companies reported growth in their UK businesses.

Entain said third-quarter net gaming revenue rose 2%, with its UK and Ireland business up 8%. Online revenue in that region climbed 14%. Chief executive Stella David urged the government to reconsider any further tax increases.

Rank reported a 5% rise in like-for-like net gaming revenue to £216.1 million in the three months to September. Grosvenor venues and digital revenue each grew 6%, but chief executive Richard Harris said speculation about tax increases was already weighing on investment plans.

Rank said it closed three venues during the quarter, in Swansea, Reading Central and Sunderland, because they were no longer economically viable. It maintained its full-year profit expectations, assuming no further changes to the current UK tax regime.

Entain reiterated its annual guidance but expects underlying earnings at the lower end of its £910 million to £960 million range. The companies’ warnings come ahead of the Budget on 28 October, where further tax rises are expected.