LONDON (Reuters) -Shares in British betting and gaming firms tumbled on Wednesday after the Office for Budget Responsibility said finance minister Rachel Reeves is set to increase gambling duties in
UK Gambling Stocks Plunge as Budget Tax Hikes Loom
LONDON (Reuters) -Shares in British betting and gaming firms tumbled on Wednesday after the Office for Budget Responsibility said finance minister Rachel Reeves is set to increase gambling duties in her budget, raising fears of steep costs restricting industry growth.
The new taxes will impact businesses including Ladbrokes owner Entain, William Hill UK and 888 owner Evoke and Flutter <FLTRF.L>, the world's largest online betting firm.
Shares in those and other publicly-listed companies were down between 1% and 19% by 1238 GMT.
"From April 2026 there will be an increase in remote gaming duty from 21% to 40% and abolition of bingo duty from its current 10% rate," the OBR said in its outlook, which was unexpectedly published on its website before the budget.
The OBR also said that from April 2027, a new rate of general betting duty of 25% will be introduced for remote betting, excluding some services.
Companies and industry groups have warned that steep increases in levies could push bettors to unregulated black-markets, and threaten jobs and investments, drive consolidation among smaller operators, and force them to streamline their businesses or shut down altogether.
Reeves' moves are expected to raise an estimated 1.1 billion pounds ($1.45 billion) for the government by 2029-30.
The betting and gaming industry in the UK is exempt from VAT, but the government levies seven different duties on online and offline operators, depending on predefined activities and thresholds.
Many gambling companies had warned that a rise in taxes for a sector already bearing billions in levies every year would stack up costs and hurt growth, with senior executives actively engaging with policymakers on proposals ahead of the budget.
Calls for higher taxes on the sector have been made for several years, as part of efforts to tackle gambling addictions and enforce tighter regulation.
($1 = 0.7601 pounds)
(Reporting by Andy Bruce in London, Pushkala Aripaka and Yamini Kalia in Bengaluru, writing by Sarah Young; Editing by Toby Chopra)
