14th Oct 2024 08:40
(Alliance News) - Shares in UK betting firms plunged on Monday following a report that the Labour government is considering an up to GBP3 billion tax hit on the sector.
Late Friday, the Guardian reported that Treasury officials are understood to be weighing up proposals, put forward by two influential think tanks and backed by one of the party's top five individual donors, to double some of the taxes levied on online casinos and bookmakers.
Measures could be included in this month’s budget, the report said.
In response, shares in Entain PLC, which owns bookmakers Ladbrokes and Coral, fell 13% to 663.60 pence each in London on Monday morning. Shares in William Hill owner Evoke PLC tumbled 13% to 56.47p. Flutter Entertainment, which owns Paddy Power and Betfair, fell 7.2% to 17,205p.
https://www.theguardian.com/politics/2024/oct/11/labour-tax-gambling-firms-treasury-public-finances
Guardian sources said the Treasury had yet to make a decision but appeared "receptive" to tweaking the UK’s regime of betting and gaming duties to raise extra funds of between GBP900 million and GBP3 billion, despite opposition from industry lobbyists.
"It’s definitely on the map," said a source familiar with Treasury thinking. "There’s no obvious pushback to it."
The Guardian said the call for higher taxes is backed by Derek Webb, a former poker player and casino game inventor, who has funded campaigns for stricter regulation of the gambling industry.
Webb has given GBP1.3 million to Labour since the start of 2023, making him the party’s fifth-largest individual donor during that period.
One of the tax plans that Treasury officials are looking at comes from the Institute for Public Policy Research.
A report by the think tank estimates the government could raise GBP2.9 billion next year – and up to GBP3.4 billion by 2030 – by doubling taxes on "higher harm" products such as online casino games.
Last year, the taxes raised GBP3.3 billion, or about GBP2.2 billion excluding lottery duty, the report said.
By Jeremy Cutler, Alliance News reporter
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