Ladbrokes owner Entain flags fresh hit from second UK tax hike

Oct 28 (Reuters) - Ladbrokes owner Entain said on Wednesday it expected an additional £25 million ($33.21 million) cost impact to its UK and Ireland retail business after the UK government raised taxes on the gambling industry for the second consecutive year.

Shares of the betting company rose 5%, however, as the tax increases came in lower than expected.

• British finance minister John Healey, delivering his first budget, raised Machine Games Duty, a tax on the net takings from some slot machines, to 25% from 20%

• Entain said it was disappointed with the government's decision to increase the tax burden on an "already highly taxed industry"

• The latest increases follow last year's budget, when the UK government increased taxes on online gaming such as casino games and slots to 40% from 21% and on sports betting to 25% from 15%

• Entain, which had already cut jobs to mitigate the higher costs, said it will continue to take decisive actions to navigate the additional taxes

• The company kept its fiscal 2026 guidance and expectation of generating £500 million annual adjusted cashflow in 2028 unchanged

($1 = 0.7527 pounds)

(Reporting by Yamini Kalia in Bengaluru; Editing by Tasim Zahid)