Shares in UK gambling firms fell sharply on Wednesday after Chancellor Rachel Reeves announced a steep increase in taxes on online betting. The remote gaming duty, levied on online casinos, will nearly double from 21% to 40% from April next year, raising an estimated £1.1bn annually by 2029-30.
The announcement came after the Office for Budget Responsibility accidentally published a document confirming the tax hike, causing shares to tumble even before Reeves delivered her budget. By the end of the day, three major companies—Rank Group, Evoke, and Entain—had revised down profit forecasts or warned of job losses. Entain, owner of Ladbrokes, said the changes would shave £150m off underlying profit by 2027, with its boss describing the move as 'deeply appalling'.
The Betting & Gaming Council called the increase a 'devastating hammer blow' for the sector. However, Treasury select committee chair Meg Hillier defended the decision, saying the chancellor had rightly refused to bow to industry 'scaremongering'. She argued that online gambling, unlike racecourses or bingo halls, makes no cultural contribution and can quickly drain the bank balances of vulnerable people.
General betting duty on online sports wagers will rise from 15% to 25% from April 2027, though horse racing bets are exempt. Bingo duty will be abolished from April. The government also pledged £26m over three years to help the Gambling Commission tackle the illicit market, which industry figures warn will expand as a result of the tax rise.
Shares in Evoke plunged more than 18%, while Rank and Entain rose slightly. All three warned of financial hits: Entain expects underlying profit to fall by £100m next year and £150m the year after; Evoke forecast extra duty costs of £135m; and Rank predicted a £40m hit to operating profit. The OBR estimates the changes will raise £1.1bn annually by 2029-30, though some customers are expected to bet less or switch to the unregulated market.
