A wave of market volatility swept through the UK gambling sector last week, as rumours of increased gambling levies triggered a notable sell-off among London-listed operators.
Key Market Movements
On Friday, reports surfaced that the UK government may raise both online and land-based gambling levies in its upcoming autumn budget. The market response was swift:
- Flutter Entertainment fell 8.1%, closing at 21,060.00p
- Entain declined 5.8% to 938.00p
- Evoke dropped 7.2% to 66.10p
- Rank Group lost 4.8% to 147.60p
Although the sell-off cooled by Monday, shares remained below pre-rumour levels:
- Flutter: -0.09% to 21,040.00p
- Entain: -0.95% to 929.08p
- Evoke: -2.31% to 64.57p
- Rank: +0.95% to 149.00p
This mirrors a similar scenario in October 2024, when a rumored £3bn tax increase triggered a comparable market dip, although the hike never materialised.
Regulatory Uncertainty
The UK Chancellor has confirmed that a review of gambling taxation is underway, but no official changes have been announced. Analysts remain split—some view the current market reaction as premature, given the absence of formal policy details.
The Betting and Gaming Council has already flagged potential risks, warning that aggressive tax policies could lead to consumer migration toward unlicensed operators.
What’s Next?
The upcoming earnings release from Entain could become a pivotal moment, potentially shedding light on the sector’s resilience or vulnerability amid regulatory headwinds.
Meanwhile, investors will continue monitoring any early signals from the Treasury, with further price volatility expected until the budget plans are finalised.