Due to reports that the UK's autumn budget may increase gambling taxes, London-listed gambling stocks plummeted last Friday and have not recovered this week.
The Guardian quoted government sources as saying that it is "almost certain" that taxes on both online and physical gambling will be increased. Following the news, Flutter Entertainment plunged by 8.1%, Entain by 5.8%, Evoke by 7.2%, and Rank Group by 4.8%. As of Monday, although the stock prices have stabilized, they remain below the levels before the rumors, with only Rank Group making a slight rebound.
This situation reminds the market of October 2024, when similar rumors of tax increases caused the industry to evaporate billions of pounds in market value, which ultimately did not materialize in the budget. The Chancellor of the Exchequer, Rachel Reeves, has only confirmed a review of gambling taxes, with specific policies to be announced later this year.
The Betting and Gaming Council (BGC) warns that significant tax increases would weaken the competitiveness of the regulated market and push consumers towards illegal platforms. Analysts believe the market may be overreacting, but uncertainty will continue to affect investor sentiment until the budget is released, especially around the time of Entain's financial report this week.
