Rachel Reeves gambling taxes blamed by Ladbrokes owner for £681million losses

The Treasury reforms included a rise in the remote betting levy from 15 per cent to 25 per cent, which will take effect in April 2027.

Online casino operators will face an even larger increase, with remote gaming duty rising from 21 per cent to 40 per cent starting next month.

Despite the losses, the company reported annual revenues of £5.26billion, representing a three per cent increase year-on-year.

Stella David said the business remained confident in its ability to adapt to the higher tax environment.

"There are many, many players in the UK that just don't have the bandwidth to absorb those increases, so the big players like ourselves will take that share."

She said the company was "very comfortable" with its ability to navigate the fiscal changes while expanding its market position.

The results also highlighted progress in the United States through BetMGM, Entain’s joint venture with MGM Resorts International.

The business has now reached profitability as it expands in the American sports betting and online gaming market. Investors reacted positively to the results announcement.

Shares in Entain rose six per cent during afternoon trading in London, although the stock remains around 17 per cent lower over the past year. Industry representatives have repeatedly warned that higher gambling taxes could have wider consequences for the regulated market.

Ms David said: "The UK regulated market is going to shrink as the black market grows."

She added that the company’s focus would be to expand its share of the legal market even if the overall sector contracts.

"Our aim is to grow our share of the regulated market even as it shrinks."

Following the Budget announcement last November, the chief executive indicated the company would review its spending and operational structure.

This included plans to scale back promotional offers and bonus incentives offered to customers. The group also said it would consider relocating some higher-paid roles overseas as part of cost management measures.

Entain now expects to offset roughly half of the additional tax burden from 2027. Earlier projections had suggested the company might only be able to mitigate about a quarter of the increased costs.

The firm said part of its strategy involves using artificial intelligence to improve operational efficiency, particularly in marketing and customer acquisition.

Cost reductions will also come from scaling back promotional spending and other operational changes.

The tax increases have also affected other companies in the sector.

Evoke, the owner of William Hill and 888 Holdings, put itself up for sale in December after facing greater pressure than larger and more internationally diversified competitors such as Entain and Flutter Entertainment.

Evoke issued a profit warning on the evening of the Budget announcement and abandoned its financial targets. The company also signalled that thousands of job losses could follow.

Greg Johnson of Shore Capital maintained a "buy" rating on Entain shares following the results announcement.

Mr Johnson said the current share price does not fully reflect the group’s underlying growth prospects, including the rising value of its 50 per cent stake in BetMGM and stronger cash generation.

The Government expects higher gambling taxes to raise additional revenue over the coming years.

The Office for Budget Responsibility (OBR) has forecast that the levies could generate £1.1billion in extra receipts by the end of the current parliament.

However, the watchdog has also warned that some of this revenue could be lost if gamblers switch to unregulated operators.