UK Gambling Stocks Fall On Early Trading In Fears Of Tax Rise

According to a reports in the UK press , Chancellor Rachel Reeves is contemplating proposals to potentially double the tax burden on the UK gambling industry, which could translate to an additional £3 billion ($3.9 billion) in revenue for the government.

Entain Plc, the parent company of the Ladbrokes and Coral betting brands, was one of the hardest hit by the market’s reaction to the potential tax hike. The company’s shares dropped as much as 15% in early morning trading, reflecting the significant impact that such a substantial increase in tax obligations could have on its bottom line.

Rank Group Plc, the operator of the Grosvenor Casinos and Mecca Bingo brands, also felt the sting of the market’s reaction. The company’s stock price fell nearly 7%, as investors grappled with the potential implications of the proposed tax measures on Rank Group’s financial performance.

Evoke Plc, the owner of the renowned William Hill betting brand, was not spared from the industry-wide sell-off. The company’s shares slid as much as 16%, underscoring the widespread concern among investors regarding the future profitability of UK gambling operators in the face of heightened tax obligations.

The ripple effects of the potential tax hike were not limited to UK-based companies. Flutter Entertainment Plc, the parent company of popular brands like Paddy Power and Betfair, also saw its stock price tumble, closing down 8.8% on Friday.