A recent report from *The Guardian* suggests that ministers in the UK’s Labour Government are contemplating a substantial tax increase on the gambling sector, potentially raising as much as £3bn ($3.92bn).
The proposals, said to be introduced by two prominent think tanks, have garnered backing from Derek Webb, a former poker player, casino game inventor, and Labour Party donor. The raised funds, projected between £900m and £3bn, would help address a £22bn budget gap identified by UK Chancellor Rachel Reeves in the nation’s finances.
One of the think tanks, the Institute for Public Policy Research (IPPR), estimated that doubling taxes on “higher harm products,” such as online casino games, could generate approximately £2.9bn, with potential growth to £3.4bn by 2030.
The Social Market Foundation, another think tank involved in the proposals, suggested increasing the tax rate for online gambling companies from 21% to 42%, which could yield around £900m in revenue.
The stock market reacted sharply to the news, with gambling-related stocks experiencing notable declines. This morning, Evoke saw an 11% drop in share prices to £0.57, Entain’s shares fell by 10% to £6.86, and The Rank Group’s shares declined by 7% to £0.80. Even Flutter, a major player in the industry, saw its stock price drop by 5% to £176.45.
Gambling Insider has reached out to the Betting and Gaming Council (BGC) for comments on the situation. In related legal news, Licensed Dutch Online Gambling Providers (VNLOK) and the Dutch Online Gambling Association (NOGA) have expressed concerns over the increasing amount of money being spent on illegal gambling activities in the Netherlands.