UK bookmakers hit hard as tax increase fears grow

In the UK, shares in major bookmakers experienced a significant decline on October 14, 2024, following reports that the Treasury is contemplating a substantial tax increase for the gambling sector. This potential tax hike, aimed at raising between £900 million and £3 billion, is part of efforts to bolster public finances. The news led to a collective loss of approximately £1.8 billion in market value for prominent companies such as Entain, Evoke, and Flutter. Entain, which operates brands like Ladbrokes and Coral, saw its shares drop by 13.4%, while Evoke, previously known as 888 Holdings, fell by 11.2%. Flutter's shares also faced a notable decline. The proposed changes to betting and gaming duties have raised concerns among investors, reflecting the broader implications of government fiscal policies on the gambling industry. As the Treasury considers these adjustments, the potential impact on the profitability and operational strategies of these companies remains a critical point of discussion among market analysts and stakeholders.