UK Gaming Stocks See Unexpected Gains in the Face of a Costly Budget
- Written by: Gary Howes
File image of Chancellor Rachel Reeves. Picture by Kirsty O'Connor / Treasury.
UK gambling stocks rose in the wake of a sweeping set of tax increases announced in the government’s November Budget that analysts said would weigh heavily on sector profitability.
The moves surprised traders who had expected sharper declines following measures that will raise more than £1.1 billion by 2029–30 through higher duties on online gaming and remote sports betting.
The government confirmed that Remote Gaming Duty will jump from 21% to 40% in April 2026, while a new 25% duty on remote sports betting - excluding horse racing - will replace the existing 15% General Betting Duty from April 2027.
✳️ Secure today's exchange rate for a future payment. You may also book an order to trigger your purchase when your ideal rate is achieved. Learn more.
The sharpest increases fall on digital operators, including companies running platforms typical of a UKGC-licensed online casino, a segment that dominates consumer-facing comparisons such as CasinoBeats’s UK list.
“Perhaps more surprising was the rise in share prices of gambling stocks such as Entain and Flutter, although the increase in gambling taxes was not unexpected,” said Charlie Lloyd, Head of Investments at Shackleton Advisers.
Sector reaction was volatile, with operators issuing guidance cuts and cost warnings.
✳️ Secure today's exchange rate for a future payment. You may also book an order to trigger your purchase when your ideal rate is achieved. Learn more.
"Bookmaker stocks are down as they have come out with warnings about the impact of tax hikes on the sector,” said Neil Wilson, analyst at Saxo Bank. “The Chancellor announced yesterday that Remote Gaming Duty is set to increase from 21% to 40% from April 2026, and a new online sports betting duty of 25% will be applicable to sports excluding horse racing from April 2027."
Wilson said the financial impact disclosed by companies underlined the scale of the challenge.
“Flutter reports impact before mitigation to be approximately $320m in fiscal 2026 and $540m in fiscal 2027,” he said. “Evoke, which tumbled yesterday on the news, estimates a hit of approximately £125–135mn on an annualised basis once fully implemented from April 2027 and pulled its medium-term guidance. Entain put the damage at £200mn next year and £100mn this year. Rank, which owns Gala bingo, fell 10% after saying the measures will hurt operating profit by £40mn.”
Despite those warnings, shares in Entain and Flutter recovered ground in early trade as investors reassessed longer-term prospects and the clarity provided by the Budget.
Goldman Sachs reiterated its Buy rating on Entain, saying the post-Budget environment offered a clearer re-rating path supported by online momentum, improving performance at BetMGM and a medium-term free cash flow transformation.
Flutter is rated a buy at Berenberg, although the broker cut its price target to 18,100p from 24,200p, citing the near-term earnings hit from UK tax changes despite strong international growth drivers.
Investors also drew comfort from the government’s decision to shield much of the land-based gambling sector. Bingo duty will be abolished from April 2026, casino duty bands will be frozen for 2026–27, and in-person betting and horseracing will retain the 15% General Betting Duty rate.
Analysts said the relative resilience of UK-listed gambling stocks suggested much of the tax risk had already been priced in, even as operators face a structurally higher tax burden in the online market over the coming years.