Recently, shares of UK-based bookmakers fell sharply. Concerns arose that the government could raise taxes on gaming companies in this month’s budget.
Entain is the London-listed gambling group that owns Ladbrokes. It plunged by as much as 14 per cent in early trading after a newspaper report recently that chancellor Rachel Reeves was weighing possible tax increases on the sector worth up to £3 billion. Shares in the company closed 8 per cent lower while they subsequently partially recovered.
Shares of rival Flutter fell 6 per cent in London. It owns brands including Betfair and Paddy Power. Meanwhile, Evoke lost 14.3 per cent. It is the owner of William Hill and 888. Rank Group, a casino operator fell 3.2 per cent.
During the day, Entain, Flutter, Evoke, and Rank lost a combined £2.4 billion in market capitalization.
Yet, Reeves appeared to downplay the prospect of a disciplinary raid on the sector. She told reporters at an international investment summit recently in London that they’re proud of those businesses choosing Britain as a place to invest and create jobs.
The chancellor, a Leeds MP said that they want a competitive tax system for all parts of their economy. Adding that she welcomed the presence of Sky Bet paying decent wages and providing jobs in the city.
Previously, The Guardian reported that the government was considering an increase in gambling taxes. This information was based on proposals from think tanks, including the Institute for Public Policy Research. The Institute estimated that the government could raise £2.9 billion in 2025 and up to £3.4 billion by 2030.
The IPPR has suggested doubling the duty on high street bookmakers to 30 percent. They also proposed increasing the online casino gaming duty from 21 percent to 50 percent. The report said that due to the rise of online casinos, gambling harms are increasing.
