Shares in UK bookmakers are recovering after they avoided being targeted with further tax increases in the latest budget.
On Monday last week shares in companies such as Ladbrokes and William Hill fell amid speculation that taxes on gaming machines, also known as fixed odds betting terminals, may be raised. However, when this failed to happen the bookmakers’ shares immediately recovered. For instance shares in Ladbrokes rose 8.5% and shares in William Hill gained 4.6%. Paddy Power Betfair also saw gains of around 1.16% when the budget was released.
It was thought that the bookmakers would be targeted as part of the government’s crackdown on so called “sin industries”. However, it was the tobacco industry that took the biggest hit with duty increasing to 2% above inflation on cigarettes and duty on hand rolling tobacco rising by an additional 3%.