Gambling companies operating in the UK breathed a sigh of relief after the country’s budget announcement on Wednesday didn’t reveal any tax hikes.
Rumors did the rounds earlier this month that lawmakers were thinking about significantly increasing the rates for general betting and remote gaming. The news spooked investors and led to a ￡3bn ($3.9bn) stock sell-off.
Chancellor Rachel Reeves didn’t mention the sector
Share prices of operators with significant UK exposure bounced back on Wednesday after Chancellor Rachel Reeves didn’t mention the sector. Flutter’s stock jumped 4%, Entain increased by 9%, and Evoke rose almost 13%.
The UK government will consider changing the remote gaming tax structure from its current three-layer system to a single rate that would close any potential loopholes and simplify the process.
While gambling operators were happy with the budget, others weren’t so joyous as lawmakers increased taxes to drum up an additional ￡40bn ($52bn).
Among the hardest hit were employers having to make bigger National Insurance contributions, investors dealing with a capital gains tax increase from 10% to 18%, and the elimination of an exemption that meant the heirs of farmers didn’t have to pay inheritance tax when taking over the family farm.