Entain CEO calls for ‘maths over emotion’ in gambling tax decisions

Entain CEO Stella David has urged the UK Government to take an evidence-based approach to gambling taxation, warning that increasing tax rates could reduce overall revenue and strengthen the black market.

Entain, a leading UK-based sports betting and gaming group, also maintains a significant operational presence in Malta.

Speaking during an interview about the company’s 2025 Q3 results, Ms David said her priority is to ensure policymakers understand that higher taxes do not necessarily translate into higher government income.

“Increasing taxation does not lead to increasing revenue for government,” she said.

“It is very well proven that every time you increase tax, the black market increases in size,” she continued, pointing to the Netherlands as a cautionary example, noting that when tax rates rose above 30 per cent, more than half the market shifted to unlicensed operators.

Ms David stressed that pushing players towards unregulated gambling sites, many of which appear legitimate but offer no consumer protection or payout guarantees, poses significant risks to both customers and the Treasury. She called for collaboration between government, regulators and licensed operators to curb the more than 500 sites currently targeting UK players.

Entain, which employs around 110,000 people globally, already contributes heavily to the UK economy, paying an effective tax rate of around 65 per cent. Ms David warned that further tax increases could lead to reduced marketing and promotional activity, undermining the competitiveness of licensed operators while benefiting unregulated ones.

Chief Financial Officer Rob Wood reinforced the message, describing Entain as one of the UK’s top 20 taxpayers. He cautioned that any additional tax burden would have a ripple effect across the regulated market, ultimately weakening the licensed sector’s ability to compete.

Both executives emphasised the importance of maintaining “maths over emotion” in policy decisions to protect consumers, businesses, and tax revenues alike.

Steady Q3 2025 growth, reiterates full-year guidance

For the third quarter of 2025, Entain has reported a 6 per cent year-on-year increase in total group net gaming revenue (NGR), supported by continued online growth and strong performance from its US joint venture, BetMGM.

Excluding the US, group NGR rose 4 per cent, while online NGR grew 5 per cent, reflecting steady momentum despite softer sports margins in September.

BetMGM, Entain’s US joint venture, delivered a strong performance with net revenue of €498 million ($667 million), marking a 23 per cent year-on-year increase. The positive results were driven by a 21 per cent rise in iGaming revenue and a 36 per cent increase in online sports revenue.

BetMGM’s EBITDA for the quarter was €30 million ($41 million), a significant turnaround from a loss in the previous year. The company has raised its full-year 2025 guidance to at least €2.06 billion ($2.75 billion) in net revenue and approximately $200 million (€149 million) in EBITDA.

Ms David said the results demonstrate “the quality of our diverse business and its underlying momentum.” She added that the company’s transformation strategy and disciplined execution are positioning Entain for sustainable long-term growth.

She concluded that Entain’s transformation is progressing effectively, with the company poised to generate over €668 million (£0.5 billion) in annual cash flow by 2028.

Featured Image: Stella David / LinkedIn