Gambling Shares Lose £4bn in Value Amid Fears of Reeves Tax Raid
We’ve just seen a major shake-up in gambling shares in the market. Shares across big companies like Flutter, Entain, and Evoke tumbled sharply. Together, they lost over £4 billion in value in one day. This happened after reports that Chancellor Rachel Reeves may raise taxes on the industry in the autumn Budget, which many are calling a “tax raid.”
We can feel investors’ nerves. They worry about sudden tax changes and what that means for profits. We want to explore what’s behind this plunge. We’ll break down who got hit hardest. We’ll unpack what Reeves might do and why now. And we’ll ask: could this lead to a bigger shakeup?
Background: UK Gambling Industry Landscape
We know the UK’s gambling sector is big. It’s worth around £15 billion. Major players like Flutter (Paddy Power), Entain (Ladbrokes, Coral), and Evoke (William Hill) dominate the scene. They bring in big money and pay hefty taxes. The industry supports jobs, sports sponsorship, and local economies, especially in horse racing towns.
Trigger Event: Reeves’ Possible Tax Measures
The recent fall in share value is tied to fears of tax hikes in the upcoming autumn Budget. Chancellor Rachel Reeves is under pressure to close a large fiscal gap estimated at £40-50 billion.
Talks include merging the current multiple tax tiers on remote gambling into a single rate. Increased duties on online casinos are a strong possibility as a fresh revenue source.
Market Reaction and Gambling Shares Price Movements
We saw a dramatic drop in the market value of over £4 billion wiped off on one trading day. Flutter lost roughly £4.2 billion; Entain shed about £37 million; Evoke lost £23 million. This sell-off reflects real investor anxiety about sudden tax changes.
Investor & Industry Concerns
We see the industry pushing back hard. Flutter’s CEO pointed out that they already paid nearly £750 million in UK taxes in 2024. He warned that over-taxing could cut total tax revenue, a lesson drawn from the Netherlands. Industry leaders fear higher taxes will push gamblers to unregulated sites.
Political & Public Perception
Politicians and activists are divided over gambling shares. Former PM Gordon Brown supports raising taxes; he sees it as a way to fund ending the two-child benefit cap. The IPPR think tank estimates such reforms could raise £3.2 billion.
But industry groups warn that increasing taxes will hurt jobs, hurt racecourses, and push betting underground.
Possible Outcomes & Scenarios
If the government goes ahead, taxes on “high-harm” forms of betting like online casinos could rise to 50%, while racing may get lighter treatment.
This may curb problem gambling, but it risks destabilizing regulated businesses and reducing sponsorship income.
Alternatively, strong lobbying (the sector has stepped up its charm offensive with MPs and staff) might lead to adjustments or exemptions. Investors may pivot to alternatives or demand clarity before committing more capital.
Gambling Shares: Closing
We’ve walked through the UK gambling industry’s current state. Shares fell sharply, triggered by tax-hike fears. Policy talk ranges from merging tax tiers to doubling duties on some gambling types. Industry players warn of negative knock-on effects. Political players are split between raising funds for social goals and protecting jobs and culture. What happens next will shape the sector’s future and whether investors regain confidence.