Betting on Challenges: UK Gambling Firms Face Tax Hikes

British gambling firms recover despite higher gambling duties imposed by Finance Minister Rachel Reeves. The tax changes, focusing on online gaming, are expected to generate substantial financial burdens for major companies like Flutter and Evoke. Stakeholders express concern over potential job losses and a shift to unregulated markets.

Shares in British betting and gaming giants rebounded on Wednesday following initial concerns over increased gambling taxes, though top firms still brace for significant financial burdens. Finance Minister Rachel Reeves unveiled a budget prioritizing higher taxes for online gaming over retail gambling due to the risks associated with the former.

Reeves stated her intention to reform gambling taxes, citing the harm linked to online gaming. As a result, taxes on remote gaming increased from 21% to 40%, and online sports betting levies rose from 15% to 25%. This change critically impacts companies such as Entain, William Hill UK, Evoke, and industry leader Flutter.

Despite the initial market shock, stocks like Entain and Flutter experienced growth due to their U.S. presence and retail operations. However, Evoke suffered a substantial decline, leading to the withdrawal of its medium-term guidance. Stakeholders fear increased taxes could drive consumers toward unregulated markets, affecting jobs and investments.

(With inputs from agencies.)