"Duty rises announced in Rachel Reeves's second budget as chancellor, targeted at online betting and gaming, are set to cost the industry an extra 8.3bn by 2030-31, according to the Office for Budget Responsibility (OBR). Firms have responded by warning of job losses and an exodus of punters to illicit websites, which will be able to continue offering bonuses to woo punters, even as the licensed sector hacks back such incentives to cut costs."
"Deutsche Bank declared the budget a clearing event which improves the near-term outlook of the UK gambling sector and rated gambling stocks a buy. UBS maintained its advice to buy Entain stock, while Jefferies advised buying every listed player in the sector. Analysts focused on the removal of long-lasting uncertainty over tax rates and the ability of large, diversified players such as Entain and Flutter the owners of Ladbrokes and Paddy Power respectively to mop up market share from smaller rivals."
Rachel Reeves’s second budget raised duties on online betting and gaming, with the OBR estimating an extra £8.3bn cost to the industry by 2030-31. Firms warned of job losses and an exodus of punters to illicit websites able to continue offering bonuses, while licensed operators will cut incentives to reduce costs. Large, diversified operators such as Entain and Flutter are expected to gain market share from smaller rivals unable to absorb the duty increases. Several small operators announced service reductions or sponsorship withdrawals. Evoke (formerly 888 Holdings) has seen a steep fall in market value following the budget announcements.
Read at www.theguardian.com
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