Shares in listed bookmakers Entain PLC (LSE:ENT), Flutter Entertainment PLC (LSE:FLTR) and Evoke PLC (LSE:EVOK) tumbled on the back of news that the UK government might target the sector in this month's Budget.
HM Treasury could hit the gambling industry with a £3 billion tax raid, it was reported at the weekend, as Rachel Reeves looks for ways to help fill the £22 billion 'black hole' in the public finances.
Proposals have been suggested by a pair of thinktanks to double some taxes levied on online casinos and bookmakers, the Guardian reported, backed by major Labour donor Derek Webb, a campaigner for tighter gambling industry regulations.
Doubling taxes on 'higher harm' products such as online casino games could be included in the 30 October Budget, while lottery and bingo could go unscathed.
Shares in FTSE 100-listed Entain, the owner of Ladbrokes, Coral, Sportingbet and many others, fell 12.6%, while in the FTSE 250, William Hill owner Evoke was down 15.4%. Flutter, owner of Betfair and Paddy Power, slipped 8.8%.
Grosvenor casinos operator Rank Group PLC, which also has a sizeable digital business, dropped 6.9%.