The gambling sector experienced a sharp decline, with Entain recording the biggest loss of the day.
United Kingdom.- The British government is reportedly considering a tax increase that could reach £3,000m (approximately €3,600m). On Monday, shares of companies like Entain, owner of Ladbrokes, fell by 15 percent, while casino operator Grosvenor, Rank Group, lost nearly 7 percent, and Evoke, owner of William Hill, saw a drop of up to 16 percent. Flutter Entertainment, listed on the New York Stock Exchange, also experienced a decline of 8.8 percent last Friday.
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According to The Guardian, it reveals that officials from the British Treasury are considering doubling some of the taxes that affect online casinos and betting houses, a proposal supported by two influential think tanks. Although no final decision has been made, the measure could be included in the budget that the Government will present on October 30.
It is worth remembering that taxes on the gambling industry in the United Kingdom have not changed since 2019, when the remote gaming rate was increased from 15 percent to 21 percent. According to David Brohan, analyst at Goodbody, an increase of one percentage point could reduce Flutter's EBITDA by 0.6 percent, Entain's by 0.7 percent, Evoke's by 1.6 percent, and Rank's by 2 percent.
