UK Gambling Firms Face Market Turmoil Amid Possible Tax Hike
Shares in British gambling companies have significantly dropped in value by over £2 billion amid speculation that additional taxes could be imposed on the sector. Chancellor Rachel Reeves is under pressure to fill a £22 billion deficit and is considering proposals from thinktanks that suggest raising taxes on online gaming, with potential plans to generate between £900 million and £3 billion. The proposals from the Social Market Foundation and the Institute for Public Policy Research vary in approach, but both are leading to market uncertainty as investors react to the possibility of increased regulations and taxes.
Shares in British gambling companies have experienced a significant drop in value, with a reduction of over £2bn in stock market capitalization following a report by the Guardian.
The report indicates that Treasury officials are considering imposing additional taxes on the sector to generate between £900m and £3bn in revenue.
This move aligns with efforts by Chancellor Rachel Reeves, pressured by thinktanks like the Social Market Foundation (SMF) and the Institute for Public Policy Research (IPPR), to fill a £22bn deficit in national finances.
The proposals vary, with the IPPR suggesting the possibility of increasing taxes by nearly £3bn through hiking existing duties on 'higher harm' products, while the SMF proposes raising the remote gaming duty from 21% to 42% to collect an additional £900m.
Amidst these speculations, shares in major companies like Entain, Flutter, and Evoke have seen declines.
Analysts caution that dramatic tax increases could harm operator profitability, affecting the overall market.
The Betting and Gaming Council has expressed concern over the potential effects on industry growth and employment.
The report indicates that Treasury officials are considering imposing additional taxes on the sector to generate between £900m and £3bn in revenue.
This move aligns with efforts by Chancellor Rachel Reeves, pressured by thinktanks like the Social Market Foundation (SMF) and the Institute for Public Policy Research (IPPR), to fill a £22bn deficit in national finances.
The proposals vary, with the IPPR suggesting the possibility of increasing taxes by nearly £3bn through hiking existing duties on 'higher harm' products, while the SMF proposes raising the remote gaming duty from 21% to 42% to collect an additional £900m.
Amidst these speculations, shares in major companies like Entain, Flutter, and Evoke have seen declines.
Analysts caution that dramatic tax increases could harm operator profitability, affecting the overall market.
The Betting and Gaming Council has expressed concern over the potential effects on industry growth and employment.
