Shares in the UK’s largest online gambling firms recovered late Wednesday, even as the newly announced tax rise on digital bets looms over the sector.

Firms including Flutter Entertainment and Entain rose 3.4 percent and 2.5 percent respectively, reversing earlier losses tied to the government’s budget-driven tax hike plans.

([The Guardian][1]) The rebound reflects growing confidence among some investors that large operators may weather the increase more easily than smaller rivals — thanks to their diversified global operations and a significant revenue base outside the UK. For instance, Flutter has substantial earnings from its U.S.-facing business, which now helps cushion the impact of UK-specific levies.

([Reuters][2]) Still, the tax changes are material.

The new rules raise the remote-gaming duty (RGD) from 21 percent to 40 percent from April 2026, and introduce a higher levy on online sports betting, increasing it from 15 percent to 25 percent by 2027. Bingo duty will be abolished, and retail betting and horse-racing wagers remain taxed under existing rates.

([Financial Times][3]) Some companies remain under pressure.

Evoke plc — owner of brands such as William Hill and 888 — saw its shares slide sharply, underscoring concerns over its heavy dependence on UK online customers.

The firm has warned that the duty hike could lead to reduced UK investment and potential operational cutbacks.

([Reuters][2]) Industry analysts are now dividing firms into two camps: large diversified operators with global footprints and substantial non-UK income streams — more likely to absorb the extra tax — and smaller, UK-focused players that could face disruption if customers migrate to unregulated offshore platforms or reduce activity.

The coming months will test whether the rebound in share prices signals sustainable confidence or merely a short-term repricing.