UK gambling stocks remain under pressure amid renewed tax rise speculation
Market reaction mirrors 2024 sell-off despite government silence on confirmed policy.
Key points:
– Gambling share prices fell sharply Friday on rumours of higher UK gambling taxes
– Market drop recalls October 2024 sell-off, when similar reports proved unfounded
– Prices stabilised slightly today but remain below pre-rumour levels
London-listed gambling operators remain under pressure following sharp falls on Friday, triggered by reports suggesting a significant rise in UK gambling levies could be included in the autumn budget.
The Guardian reported late Thursday that higher taxes on both online and land-based gambling are “near-guaranteed,” citing government sources.
The speculation prompted a sell-off across the sector, with Flutter Entertainment closing down 8.1% at 21,060.00p ($267.22), Entain falling 5.8% to 938.00p, Evoke dropping 7.2% to 66.10p and Rank Group down 4.8% at 147.60p.
By Monday, share prices had stabilised but showed little sign of recovery. Flutter edged down 0.09% to 21,040.00p, Entain slipped a further 0.95% to 929.08p and Evoke fell another 2.31% to 64.57p. Rank Group was the only riser, up 0.95% to 149.00p.
Good to know: In October 2024, similar rumours of a £3bn gambling tax rise prompted heavy sector losses, but no such increases were implemented in the subsequent budget
Chancellor Rachel Reeves confirmed last week that a review into gambling taxation is underway but stopped short of confirming any specific changes, stating policies will be outlined “in the normal way” later this year.
Industry body the Betting and Gaming Council (BGC) has opposed recent calls for steep rises in gambling taxes, branding proposals from the Institute for Public Policy Research (IPPR) “economically reckless” and warning they could push consumers towards unregulated operators.
Some analysts have suggested that Friday’s market reaction may have been premature.
The coming weeks are expected to be key for investor sentiment, with Entain due to report results later this week. Any further indication of government thinking ahead of the budget could trigger renewed volatility in gambling stocks.
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