The UK’s largest gambling companies have lost more than £4 billion in market value amid mounting fears that Chancellor Rachel Reeves will target the sector with higher taxes in her autumn Budget.
Flutter Entertainment, the owner of Paddy Power, Entain, which operates Ladbrokes and Coral, and William Hill’s parent company Evoke all saw steep share price declines on Friday following reports that a tax rise on the industry is “near-guaranteed”.
The sell-off wiped £23 million from Evoke’s market capitalisation and around £37 million from Entain, while Flutter – now listed in New York – shed more than $5.7 billion (£4.2 billion) in value.
The potential tax hike comes as Reeves faces a fiscal gap of around £50 billion. The National Institute of Economic and Social Research has warned that the Chancellor is on course to miss her borrowing targets by £41.2 billion, leaving her with little choice but to raise taxes or cut spending.
Calls for the sector to pay more intensified this week after former chancellor Gordon Brown said additional duties could help fund the removal of the two-child benefit cap and lift more families out of poverty.
Citing analysis by the Institute for Public Policy Research (IPPR), Brown argued that reforms to gambling taxation could raise up to £3.2 billion, particularly if targeted at the most profitable segments such as online casinos, slot machines and high-stakes betting.
“There are many reasons why the highly profitable betting and gaming industry should pay a fairer share,” Brown said.
Industry leaders have warned that excessive tax rises could drive consumers to unregulated online operators.
Flutter chief executive Peter Jackson said the company paid almost £750 million in UK taxes in 2024 and cautioned that overtaxing the sector could backfire. “If you continue to push tax rates up, you actually see a reduction in the tax take,” he said, citing the Netherlands, where higher duties have led to a €200 million (£173 million) shortfall.
Louie French, the shadow gambling minister, called the reported plans “short-sighted”, arguing they would hurt jobs, sports sponsorship and consumer safety.
A YouGov survey of 6,153 people this week found that 42% strongly support higher taxes on online gambling, with a further 28% somewhat supportive. Only 16% expressed opposition.
The Betting and Gaming Council said the IPPR proposals were “economically reckless” and “factually misleading”. A spokesman warned they could “drive huge numbers to the growing, unsafe, unregulated gambling black market, which doesn’t protect consumers and contributes zero tax”.
The Treasury declined to comment. Evoke and Entain also did not comment on the share price falls.
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Gambling firms lose £4bn in market value amid fears of Reeves-led tax hike