The Chancellor unveiled a reform of online gambling taxes, lifting remote gaming duty from 21% to 40% and online betting duty from 15% to 25% while keeping in-person gambling and horse racing taxes unchanged and abolishing bingo duty from April 2026.

Flutter Entertainment warns the Budget changes will shave about $320 million from underlying earnings in 2025-26 and around $540 million in 2026-27, with potential relief of up to 40% by 2027 from cost cutting and reduced marketing spend.

Flutter reiterates that the tax hike will reduce earnings and notes the broader impact across operators, with some rivals showing mixed reactions based on exposure and business models.

The leak accelerates strategic planning for operators, suppliers, and investors as they reassess cost controls, product distribution, and long-term positioning in the UK market.

Entain, a rival with broader global exposure, recovered initial losses and closed higher, reflecting mixed reactions across operators with different geographic exposure.

Market context indicates operators with global exposure fared comparatively better, with Entain’s stock rebounding after early declines.

Regulatory context centers on an RNS release as the information source, with references to UK tax policy and potential market and receipts effects, including comparisons to the Netherlands.

BHA chief executive Brant Dunshea warns of potential negative impacts on racing from revised rates and stresses ongoing collaboration with betting operators to mitigate consequences such as sponsorship and shop closures.

Key figures cited include Chancellor Rachel Reeves, Betting and Gaming Council CEO Grainne Hurst, and Treasury Select Committee chair Dame Meg Hillier.

The overarching aim is to simplify taxation and address sector concerns, with background discussions noting industry pushback, offshore bases, and expert input on the tax’s effects on problem gambling and retail segments.

Industry bodies emphasize understanding the Budget’s full implications, maintaining collaboration with operators, and defending the role of regulated gambling for tax revenue, jobs, and safer gambling.

The Budget aims to curb gambling harms but faces concerns about unintended consequences and potential job losses within the industry.