Gambling stocks slump as OBR confirms higher taxes

(Sharecast News) - Shares in gambling companies slumped on Wednesday as the Office for Budget Responsibility confirmed the sector would be facing higher taxes. According to the OBR's Economic and Fiscal Outlook, which was accidentally released early - changes planned will raise £1.1bn by 2029-30.

"From April 2026 there will be an increase in remote gaming duty from 21% to 40% and abolition of bingo duty from its current 10% rate," the OBR said.

From April 2027, a new rate of general betting duty for remote betting will be introduced at 25%. This will exclude self-service betting terminals, spread betting, pool bets, and horseracing.

"The Government has also announced a freeze in casino gaming duty bands in 2026-27 with the usual RPI [retail price index - inflation] uprating thereafter," the OBR said.

The news sent gambling shares lower and by 1245 GMT, Ladbrokes owner Entain was down 2.9% at 725.60p, while Evoke - formerly 888 Holdings - was down 12.4% at 32.75p. Flutter Entertainment was 2.4% lower at 14,405p.

However, Rank Group - which owns Grosvenor Casinos and Mecca Bingo - surged 10% to 118p.

Neil Wilson, UK investor strategist at Saxo Markets, said: "Gambling stocks were among the biggest losers on the FTSE as the hike in the remote gaming duty from 21% to 40% was as bad as feared.

"Bookies were always going to be on the sharp end of this tax-grab Budget."

The OBR is meant to publish its outlook once the Chancellor has finished delivering the Budget. However, the outlook went live on its website too early due to a "technical error".

The OBR apologised for the mistake and said it has initiated an investigation into how this happened.