Entain blames 'dramatic' tax increase for shift in marketing spend away from racing as company unveils 2025 results

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The chief executive of Ladbrokes and Coral has said the company remains supportive of horseracing, but that the tax hikes announced in November's budget meant it had to pivot marketing spending away from Britain to other countries.

Stella David's comments followed the decision that Coral should end their sponsorship at the Cheltenham Festival this year and on the back of the news that bet365 have also ended a number of deals in British racing.

Nevertheless, Entain said it was well placed to make gains in the UK and Irish market as the company unveiled its financial results on Thursday morning.

Coral have sponsored at the festival since 1974, but revealed in January that they wouldn't do so this year due to the "sheer size" of the tax rises announced by Chancellor of the Exchequer Rachel Reeves.

Entain chief executive Stella David

David told the Racing Post: "Racing is an important part of our offering in the UK. It's a much-loved sport, but we have to invest fewer marketing dollars in the UK wisely.

"With the Coral Cup unfortunately it's a choice one makes when we have to trim the amount of marketing investment we put into the UK and pivot some of that investment into other countries, like Spain, where our Bwin brand is flying, or New Zealand, where we are going to get iGaming at the end of the year, or put it into Canada where we have got great momentum."

Betting on horseracing was not included in the tax rises which will start to come into force from April 1, and David said the company was still investing in the sport, including a new bet builder product.

However, she added: "With the Coral Cup we stopped that investment as a direct consequence of what happened. It's a hollow victory. On one side racing got a win, but it didn't really get a win because the whole system is fully integrated.

"We are very supportive of horseracing but it is not easy when you have to make choices."

Rachel Reeves' tax rises were described as "dramatic and hugely disappointing"Credit: Leon Neal/Getty Images

David described the tax increases as "dramatic and hugely disappointing" and warned they would only fuel the black market.

She added: "While the black market will increase, our goal and our firm view is that we will increase our share of the regulated market because we have the scale and capacity to do that."

Entain recorded a group statutory loss after tax of £681 million in 2025, compared to a £461m loss in 2024, which included a £488m impairment charge relating to the gambling tax rises announced in the budget

The company said it expected to be able to offset more than 50 per cent of the increased UK tax burden from 2027.

However, David said the company had "never been in better shape" going into 2026.

The group's underlying earnings of £1.16 billion were up eight per cent over the 12 months and ahead of expectations, while total net gaming revenue (NGR), including Entain's 50 per cent share in US joint venture BetMGM, was up seven per cent.

The company said 2025 had been a strong year for its business in the UK and Ireland, which had performed ahead of expectations with NGR growth of six per cent.

David pointed to Entain achieving seven consecutive quarters of online growth, adding: "I think [that] gives some comfort and stability to our story, and the UK is one of the highlights as well as we have increased share both online and in shops."

Entain's share price ended the day at 584.4p, which is up 1.14 per cent or 6.6p.

David Brohan, gaming and leisure analyst at stockbrokers Goodbody, said: "Overall, this is another positive update from Entain, which should be well received."

Key takeouts 

• Total group Net Gaming Revenue up seven per cent
• Group underlying earnings up eight per cent at £1.16bn
• Group statutory loss after tax widens to £681m, including an impairment charge related to gambling tax increases in the UK

Read these next:

Bet365 pull out of longstanding sponsorships at Newmarket and Haydock, citing rises in gambling tax 

Coral end backing of Coral Cup at Cheltenham Festival 'with some sadness' - blaming 'sheer size' of tax rises in budget 

William Hill owner confirms shop closures after tax blow in budget 

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