Gambling Provider Shares Fall Due to Potential Online Casino Tax Increase

Entain, Flutter Entertainment, and other gambling providers saw shares fall this week.

This may be due to the potential tax increases in the gambling sector that the Government has discussed introducing.

Entain was trading over 12% lower, and Flutter over 7% lower. According to Yahoo News, William Hill and Evoke were down by 12%, and Rank, which owns Mecca Bingo and Grosvenor Casinos, were down by 5%.

The government considerations

The Treasury is seeking ways to raise between £900m and £3bn. One consideration is increasing taxes on online casinos and bookmakers.

This decision is not confirmed but could be announced in the October 30 Budget. The plan could impact both bookies and online casinos if it goes ahead. The existing 15% general betting duty on the profits made by high street bookmakers could be doubled. This could also apply to current gaming duties (21%), impacting online players.

Would it raise the money required?

While such tax plans may certainly raise billions, the plan is not without its concerns. If the increased tax goes ahead, then it could push more gambling customers to unregulated gambling markets. 

Currently, the tax is not thought to impact bingo or lotteries in the UK.

To discover your favourite online casino, read our selection of the tax is not thought toreviews.