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Gambling stocks jump on London exchange despite tax rise

UK betting shares rallied after the government confirmed a smaller tax increase than feared.

Written by the BettingEdgeHub desk, 28 October 2026

Major gambling stocks on the London Stock Exchange climbed significantly after the latest government budget announcement. Investors had feared much harsher tax increases for high street betting shops and land based gaming venues.

Chancellor John Healey confirmed that Machine Games Duty on certain machines will increase from twenty to twenty five percent starting in April two thousand twenty seven. While any tax hike puts pressure on operators, the market had braced for a jump to forty percent.

Stock prices surge

Entain shares jumped nearly five percent following the news. Chief Executive Stella David previously warned that higher machine taxes threaten retail shops, but shareholders showed relief that the worst case scenario was avoided.

Evoke, the owner of William Hill, also saw its share price rise by over four percent. The company continues to face pressure from remote and general betting duties, yet this specific tax announcement brought a sense of relief.

Rank Group shares soar

Rank Group saw the biggest gains with shares soaring over ten percent. The business relies heavily on gaming machines across its Mecca bingo halls and Grosvenor casinos.

Chief Executive Richard Harris previously warned that a doubling of the tax rate could force the closure of numerous venues. The much smaller five percent increase makes that extreme outcome unlikely for now.

Tax increases are never positive for business bottom lines or employees. However, public markets reacted with strong buying because the final policy was far milder than predicted.