Flutter Entertainment's shares rallied on October 30, 2024, following the UK Chancellor of the Exchequer's budget announcement, which contained no new tax hikes for the gambling sector. This development provided relief after earlier reports of potential significant tax increases had caused a decline in UK gambling stocks.
The market had been concerned about the possibility of the UK government aiming to raise up to $3.9 billion from the sector through new taxes. The absence of such measures removes a notable regulatory overhang that could have negatively impacted Flutter's profitability in its UK and Ireland division.
This outcome is positive for Flutter's operations in the UK, allowing its brands like Paddy Power and Betfair to continue operating without the immediate burden of increased taxation. It signals a period of stability regarding tax policy in one of its key international markets.
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