UK gambling stocks hit by tax hike fears

[The Buzz]

Amid reports that the next Budget may include a "near-guaranteed" tax increase on the gambling sector, Britain's largest gambling companies have seen their market value fall by billions. This comes as Chancellor of the Exchequer Rachel Reeves looks to address a potential £50 billion economic shortfall with a £26 billion ($34.9 billion) tax increase.

On Friday, shares in major industry players plummeted. Flutter, the parent company of Paddy Power, lost over $5.7 billion in value. Entain, which owns Ladbrokes and Coral, saw a loss of around £37 million, while William Hill owner Evoke saw its shares drop by £23 million. This market decline reflects a broader fear among investors that new taxes could significantly impact the gambling industry's profitability.

From The Telegraph:

A tax raid on the gambling sector has taken on increasing urgency in recent days after Gordon Brown, the former chancellor, said higher taxes should be imposed to help address child poverty in the UK.

On Wednesday, Mr Brown said: “We now know that taxing gambling more fairly would fully fund the first crucial step in the war we must wage against child poverty: ending the two-child limit and lifting the benefit cap.

“There are many reasons why the highly profitable betting and gaming industry should pay a fairer share towards the cost of UK’s unmet needs.”

He cited a report from the Institute for Public Policy Research (IPPR) think tank, which claimed that Ms Reeves could raise as much as £3.2bn by reforming the way gambling firms are taxed.

The IPPR said tax rises should be targeted at the most profitable parts of the industry, such as online casinos, slot machines and high-stakes betting.

Ms Reeves is under pressure to raise taxes amid slowing growth and weakness in the jobs market.

Read more here: https://www.telegraph.co.uk/business...eves-tax-raid/

[dapbet]

What's your thoughts on the announcement last week for UK Chancellor about potential tax rises on gambling?

Is that likely to see a mass exodus of operators in the mid-tier range, and push more players offshore?

[newcustomeroffer]

What's your thoughts on the announcement last week for UK Chancellor about potential tax rises on gambling?

Is that likely to see a mass exodus of operators in the mid-tier range, and push more players offshore?

Higher admin fees for affiliates to cover the tax rises is a given.

[Sherlock]

Higher admin fees for affiliates to cover the tax rises is a given.

Higher admin fees from zero is still a zero. Kind of like being over the zenith of Laffer curve. Affiliates already make nearly nothing in UK and even worse that the robbery from all UK affiliate programs is the absence of whales. Nanny state doesn't allow to gamble away heritage of bored individuals before their suicide.

[newcustomeroffer]

There's an interesting point in this article from Monday about gambling tax: https://www.racingpost.com/news/opin...-azJsc7h5qaV6/

The Dutch government is reported to be facing a gambling tax hole of more than €200 million, despite having introduced the first phase of a staggered tax rise on the sector in January.

However, according to local reports, figures from the Dutch online gambling trading body suggest gross gaming revenue was down by a quarter in the first half of this year. As a result, tax revenue will amount to just 83 per cent of the amount collected in the first half of 2024. The trade body has said the increased tax burden, along with tougher regulations in areas such as deposit limits and advertising, has led to the licensed sector losing market share to unlicensed operators.

Evidence there if it were ever needed that governments can get too greedy.

[dapbet]

Totally agree, and maybe the forgoing of CPA deals, so rev share only.