Ladbrokes and Coral owner Entain led declines on the FTSE 100 Index on Monday morning as its shares slumped 9% after a report late last week that Chancellor Rachel Reeves is mooting the tax raid to raise up to £3 billion. Ms Reeves is said to be considering the move to help plug a £22 billion “black hole” in the public finances, according to the report in The Guardian late on Friday. It is understood Ms Reeves could announce the tax raid in her October 30 Budget, with plans under consideration said to include the doubling of the 15% general betting duty on high street bookmakers’ profits as well as gaming duties, currently charged at 21%, which will hit online players. “It’s notable that the speculation suggests so-called ‘lower harm’ activities like bingo and the lottery will be untouched by any tax changes. “The betting industry will argue higher taxes could lead to an increase in illegal black-market gambling and ultimately firms may well pass on any extra costs they incur to punters, potentially doing more harm.”He added the reported tax plans are a “salient reminder of the strengthening headwinds the sector faces in terms of regulation and tax”.

Source: The Herald October 14, 2024 11:40 UTC