Shares of major British bookmakers Entain (ENT.L), Evoke (EVOK.L), and Flutter (FLTRF.L) fell sharply on Monday following a report that the Labour government may impose a £3 billion

($3.92 billion) tax increase on the gambling industry to help balance public finances.

According to the Guardian, Chancellor of the Exchequer Rachel Reeves is expected to raise certain taxes in her first budget presentation on October 30, with potential hikes for betting companies among the measures being considered.

In early trading, Ladbrokes owner Entain saw its shares drop by nearly 13%, Evoke, which owns the 888 brands, plummeted 14%, and Paddy Power owner Flutter fell 7%.

None of the companies—Entain, Evoke, or Flutter—responded to Reuters' request for comment on the situation.

Analysts from Berenberg suggested that Evoke would be the most affected by a tax increase, both due to the scale of the impact and its weaker financial position. Entain, with its high leverage, would also be significantly impacted, facing a tighter financial situation. However, Flutter is seen as the least vulnerable due to its diversified portfolio.

Entain emerged as the biggest loser on the FTSE 100 index (.FTSE100), while Evoke's shares hit the lowest point on the UK All-Share Index (.FTAS). Photo by A McLean Bookmakers, Carrickfergus by Kenneth Allen, Wikimedia commons.