Gaming shares hit by fears Rachel Reeves is plotting £3bn tax raid

Bookmaker shares fell sharply yesterday as fears grew that Labor could hit the industry with a £3bn tax raid.

More than £2bn was wiped from the value of London-listed gambling companies amid reports that Rachel Reeves is planning a crackdown on the sector.

The Chancellor is struggling to raise money so that her budget figures add up.

Among the options it is said to be considering is doubling the tax on major bookmakers to 30 per cent and increasing the tax on online casino games to 50 per cent.

Shares in Flutter, which owns Betfair and Paddy Power, fell 6% on fears a rising tax bill would eat into industry profits.

Entain, owner of Ladbrokes, saw its shares fall 8% and Evoke, owner of William Hill and 888, fell 14.4%.

Rank Group, which operates the Grosvenor Casinos and Mecca bingo chains, fell 3.2 per cent.

The Guardian reported last week that the proposals could raise £2.9bn for the government next year and up to £3.4bn by the end of the decade, amid concerns that problem gambling is on the rise.

City analysts warned the increase would decimate gambling profits, raise prices for customers and increase the risk of illegal black market operators emerging.

Jefferies analysts said such a move would “virtually wipe out the profitability of UK bookmakers”.

Russ Mould, chief investment officer at investment platform AJ Bell, said: “The betting industry will argue that higher taxes could lead to an increase in illegal black market gambling and ultimately companies could shift any additional costs they incur to punters, potentially making more.” damage.’