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(Sharecast News) - UK gambling stocks rallied on Wednesday after Chancellor John Healey announced a rise in machine games duty that was less severe than some had feared.
In his first Autumn Budget, Healey said the government plans to lift the MGD to 25% from 20%, sending shares in gambling companies surging.
At 1355 BST, Ladbrokes owner Entain was up 5.4%, Grosvenor Casinos and Mecca owner Rank Group was 8.1% higher and William Hill and Mr Green owner Evoke was up 3.8%.
JPMorgan said the announcement comes as a relief after speculation the duty could rise to 40%. The bank said it expects operators to be able to mitigate most of the impact, most likely by closing loss-making betting shops and increasing the use of sports self-service betting terminals.
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