Market jitters return as reports hint at higher levies in the autumn budget
London-listed gambling companies faced renewed pressure after sharp declines late last week, following fresh rumours that the UK government may impose significant tax increases on the industry.
Sector Hit by Friday Sell-Off
On Thursday evening, reports emerged claiming that higher taxes on both online and land-based gambling were highly likely to feature in the upcoming autumn budget. The news sparked a swift sell-off on Friday, with Flutter Entertainment dropping 8.1% to 21,060.00p ($267.22), Entain sliding 5.8% to 938.00p, Evoke losing 7.2% to 66.10p, and Rank Group falling 4.8% to 147.60p.
By Monday, trading had steadied slightly but remained subdued. Flutter slipped another 0.09% to 21,040.00p, Entain declined 0.95% to 929.08p, while Evoke fell a further 2.31% to 64.57p. Rank Group bucked the trend, inching up 0.95% to 149.00p.
Echoes of 2024’s Market Panic
The reaction mirrored the sell-off seen in October 2024, when speculation over a potential £3bn gambling tax hike rattled investors. At the time, the fears proved unfounded, as the budget went ahead without the proposed increases.
This time, Chancellor Rachel Reeves has confirmed a review of gambling taxation is underway but has not committed to any changes, stating that official policy announcements will follow “in the normal way” later this year.
Industry Pushback
The Betting and Gaming Council (BGC) has voiced strong opposition to steep tax hikes, calling proposals from the Institute for Public Policy Research “economically reckless.” The trade body argues such measures could drive customers towards unregulated operators, undermining consumer protections.
Analysts Urge Caution
Some market analysts have suggested that the recent sell-off may have been an overreaction, given the lack of concrete government policy.
Investor sentiment over the next few weeks will likely hinge on developments ahead of the budget and company performance updates. Entain is set to release its results later this week, and any fresh signs of government intent could trigger another wave of volatility in the sector.