Debt issued by gambling operators active in the UK has come under pressure after the Labour government’s planned tax hikes on the sector were more aggressive than analysts had anticipated.
In her late November budget presentation, Chancellor of the Exchequer Rachel Reeves outlined an increase in levies on most forms of online gambling. The duty on remote gaming will increase to 40% in April from 21%. In 2027, a general duty on remote betting will jump to 25%, up from 15%, excluding horse racing and spread betting.
Analysts at CreditSights said the levies were “significantly worse for the gaming industry than market expectations,” adding that the impact on earnings before mitigating measures — which firms will be heavily relying on — “is nothing short of eye-watering” for most gaming issuers they cover.
