UK Betting Giants Face Financial Squeeze with Proposed Tax Hike

Shares in UK betting firms declined after plans to increase gambling duties were unveiled. The hike could affect major companies like Entain and Flutter, potentially restricting industry growth. From April 2026, remote gaming duty will rise to 40%, and a 25% betting duty will be imposed in 2027.

LONDON, Nov 26 (Reuters) - Shares in UK betting and gaming companies saw significant declines on Wednesday following an announcement that finance minister Rachel Reeves will raise gambling duties in her upcoming budget. The Office for Budget Responsibility (OBR) revealed the plans, concerning firms such as Entain, William Hill, and Flutter.

The OBR noted that the remote gaming duty will jump from 21% to 40% by April 2026, with the abolition of the current 10% bingo duty. Additionally, a new 25% general betting duty for remote betting is set to be introduced by April 2027. This news caused share prices of relevant companies to drop between 1% and 19%.

Industry leaders warned that the increased financial burden could drive participants to unregulated markets, jeopardize jobs, and trigger industry consolidation. Despite the expected £1.1 billion revenue by 2029-30, concerns remain over stunting growth in a heavily-taxed sector. Calls for higher taxes are partly aimed at addressing gambling addiction and strict regulatory enforcement.

(With inputs from agencies.)