A tweak to US tax law may not grab headlines like a blockbuster merger, but for UK-listed gambling stocks, it could have consequences.
A proposal buried in Donald Trump’s so-called “big, beautiful bill” could dent future growth in the US betting market, and that’s something investors in Flutter Entertainment PLC (LSE:FLTR) and Entain PLC (LSE:ENT) may want to watch.
The detail is dry but significant. From 2026, US gamblers may only be able to deduct 90% of their losses against winnings, down from the current 100%.
It’s mainly targeted at professional gamblers, but it could also affect high-stakes recreational punters.
The upshot? A potential dampener on betting activity, particularly among the big spenders who drive a disproportionate share of revenue.
Citi sees this as a modest headwind to overall US wagering volumes, or “handle”, just as the market was entering a more mature growth phase.
Flutter (up 1.3%), through FanDuel, is most exposed, with the US expected to account for 44% of group revenue by 2026.
Entain (up 2.3%) is also in the frame via its joint venture BetMGM, which makes up around a quarter of forecast earnings. Not a major blow, but another risk to factor in for anyone betting on the US gambling boom.