Ladbrokes warns of job losses amid £3bn gambling tax crackdown
- The UK government is considering raising gambling industry taxes significantly, including potential increases to 30% for bookmakers and 50% for online casinos.
- This news caused a dramatic £2 billion drop in the market value of gambling companies, raising concerns about job losses in the sector.
- Despite revenue growth reported by companies like Entain and Rank Group, fear of punitive tax increases has created uncertainty and impacted investor confidence.
In the UK, the gambling sector is facing potential tax increases as government officials consider raising industry levies to improve budget revenues. Reports have surfaced indicating that the Chancellor may double the gambling duty on High Street bookmakers to 30% and significantly increase online casino gaming levies to 50%. These proposals have triggered a dramatic drop in the market value of major gambling companies, with a reported £2 billion loss in just one day amid fears of a £3 billion crackdown. Entain’s CEO, Gavin Isaacs, expressed concerns that such punitive measures could jeopardize thousands of jobs within the industry. While Entain reported an 8% growth in net gaming revenue for the first quarter, other firms in the sector, like Rank Group, have similarly posted revenue increases. Nevertheless, the recent fluctuations in share prices and investor confidence highlight the sensitive nature of the gambling market's economic stability. Analysts have voiced skepticism regarding the implementation of these speculated tax hikes, suggesting they may not be as severe as anticipated, yet the looming threats have already caused significant turmoil within the sector.