Gambling shares lose practically £3.5bn over Reeves tax raid fears – newest updates
Nearly £3.5bn was wiped off the value of British gambling companies in early trading today amid reports that Rachel Reeves is planning a £3bn tax raid on the industry.
Gambling stocks plunged in London as investors were shaken by worries about how the Chancellor might fill the £22bn “black hole” in the public finances in her Budget later this month.
Shares in Ladbrokes-owner Entain sank by as much as 15.3pc, while Grosvenor casinos operator Rank Group plunged 6.7pc. William Hill owner Evoke plummeted by as much as 16.2pc.
Shares in New York-listed Flutter Entertainment closed down 8.8pc on Friday, wiping $3.6bn (£2.8bn) off its market value after the report first emerged. Its London-listed shares sank as much as 8pc on Monday, lowering its market valuation by another £2.6bn.
It follows reports that Ms Reeves could double some of the taxes levied on online casinos and bookmakers in the Budget. Treasury officials are considering proposals first put forward by two influential think tanks and backed by one of the party’s top five individual donors, according to the Guardian.
The left-leaning Institute for Public Policy Research (IPPR) has put forward proposals which it said would raise £2.9bn next year – and up to £3.4bn by 2030.
Derek Webb, a former poker player and casino game inventor, has championed the proposals, having funded campaigns for stricter regulation of the gambling industry.
Another think tank, the Social Market Foundation, has suggested doubling the tax on online gambling companies from 21pc to 42pc, which it said would raise about £900m.
Citibank analyst Monique Pollard said such changes to UK gambling taxes could have a “material” impact on Flutter and Entain’s earnings, although Jefferies analyst James Wheatcroft called the report “unrealistic.”
Mr Wheatcroft added: “The proposals apparently being considered would all but wipe out bookmaker profitability in the UK, per our estimates.”
An HM Treasury spokesman said: “We do not comment on speculation around tax changes outside of fiscal events.”
Read the latest updates below.
