Gambling operator shares prices rose sharply on Wednesday as the sector escaped tax rises in the budget.

There had been speculation that the Treasury was considering proposals for a major hike in the rate of general betting duty and remote gaming duty, reports which wiped £3 billion from gambling stocks.

However, chancellor Rachel Reeves did not address gambling duties in her budget statement.

As a result shares in Flutter Entertainment were up by 5.42 per cent to 18,105p on Wednesday afternoon, Entain’s share price rose by 7.29 per cent to 765.2p and William Hill owner Evoke’s shares were up by 10.48 per cent to 58.5p.

The documents accompanying the budget did contain a pledge to consult next year on proposals to bring remote gambling into a single tax, rather than taxing it through a three-tax structure which the government said would “aim to simplify, future-proof and close loopholes in the system”.

A similar promise had been contained in last year’s budget, raising the prospect that general betting duty, currently levied at 15 per cent, could be increased to match remote gaming duty, which is levied at 21 per cent.

Bookmakers’ fears of a major hike in betting duties did not materialiseCredit: John Grossick (racingpost.com/photos)

Businesses across racing had been awaiting Reeves’ budget with trepidation and it contained a number of measures which would affect the industry as the chancellor raised taxes by £40 billion.

Employers will face a major increase in the amount they pay in national insurance, with the rate increasing by 1.2 percentage points to 15 per cent, while the threshold at which they start making contributions will fall to £5,000 from £9,100.

Breeders’ fears about changes to the agricultural property relief (APR) were realised, with an effective tax rate of 20 per cent being levied on properties worth more than £1 million from April 2026.

Thoroughbred Breeders’ Association chairman Philip Newton has warned that changes to APR would “accelerate the disappearance” of smaller studs.

The lower rate of capital gains tax will rise to 18 per cent from ten per cent, while the higher rate increases to 24 per cent from 20 per cent.

As expected, Reeves raised the national living wage by 6.7 per cent to £12.21 per hour, while the minimum wage for 18-20-year-olds will increase by 16.3 per cent to £10 an hour.

However, the cost of transporting horses will not rise with the chancellor freezing fuel duty next year and deciding not to reverse the 5p cut made in 2022.

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‘This is in no one’s interest’ – gambling giant warns of unintended consequences of tax hike 

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