Gambling stocks slide after reports suggest UK Government considering tax rise
The current Labour Government will deliver its first budget on 30 October. Entain, Flutter, Rank Group, Evoke and more see share prices tumble.
Key points:
– Reports suggest a potential tax raid of up to £3bn ($3.92bn) on the gambling sector
– Proposals were put forward by two thinktanks and backed by a party donor
– Stocks in the industry have taken a hit as a result
A report from the Guardian has suggested that Ministers within the Labour Government are potentially considering a tax raid of up to £3bn ($3.92bn) on the gambling sector.
These proposals have been said to have been put forward by two influential thinktanks and backed by one of Labour’s donors, Derek Webb, who is a former poker player and casino game inventor.
The extra funds that could be raised from the gambling industry could be between £900m and £3bn and are aimed to plug the £22bn “black hole” which UK Chancellor Rachel Reeves has claimed to have found in the UK’s finances.
One of the thinktanks, Institute for Public Policy Research (IPPR) has estimated the government could raise £2.9bn, and up to £3.4bn by 2030, by doubling taxes on “higher harm products” like online casino games.
Meanwhile, the other thinktank, the Social Market Foundation’s proposal would raise the tax on online gambling companies from 21% to 42%, which would raise about £900m.
Stock prices fell on Friday; this morning, those falls continued. Evoke’s shares are down 11% this morning alone, with a new share price of £0.57; meanwhile, Entain’s stocks fell 10% to £6.86 and The Rank Group’s share prices fell 7% to £0.80.
Even Flutter’s shares have been hit, down 5% to £176.45.
Gambling Insider has reached out to the Betting and Gaming Council (BGC) for further comment regarding this matter.
In other legal news, Licensed Dutch Online Gambling Providers (VNLOK) and the Dutch Online Gambling Association (NOGA) have raised concerns in the Netherlands regarding the amount of money being spent on illegal gambling in the country.
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