Gambling stocks in the UK have taken a tumble today (October 14) after a report suggests the government is potentially considering a tax raid on the gambling sector.
It was on Friday when The Guardian reported that ministers are considering a tax raid of up to £3bn on the gambling sector. Since the article was published, shares in gambling companies have dropped sharply.
Entertain, owned by Ladbrokes, was down by 14% in early trading, equivalent to a decline in its stock market value of £700m (roughly $913m USD).
Flutter also saw a fall, with a decrease of 7.5%. The owner of British gambling company William Hill, Evoke, was down by 12% and gambling software maker Playtech by almost 2%. The company Rank which owns Mecca Bingo and other online gambling brands fell by 7%.
In total, the tumbling shares listed on the FTSE decreased by more than £3bn which is around $3.9bn in dollars.
Proposals to the UK government about gambling sector
According to the original report, treasury officials are believed to be weighing up proposals that were put forward by two “influential think tanks and backed by one of the party’s top five individual donors, to double some of the taxes levied on online casinos and bookmakers.”
A source familiar with Treasury thinking told The Guardian that “It’s definitely on the map” and “There’s no obvious pushback to it.”
It’s thought that the measures could be spoken about in this month’s budget. It’s on October 30 when Chancellor Rachel Reeves will deliver the government’s budget which outlines their plans for raising or lowering taxes.
In the UK, this includes decisions about spending on education, police, health, and key public services.
One of the think tank’s proposals is due to be published this Tuesday, but it’s thought this will include a suggestion to double the tax on online gambling companies from 21% to 42%.
Another suggests remote gaming duty should be increased to 50% from its current 21%.
Featured Image: Via Ideogram
