The midday confirmation of gambling tax reforms in the UK by Chancellor Rachel Reeves, saw a widespread sell-off across many major publicly traded operators.
In the subsequent hours a curious pattern of recovery emerged, despite industry dismay at the Government's remote gaming duty hike from 21% to 40%.
Market anxiety overstated?
Many fear that the 19% increase could be catastrophic, not only to the remote gaming enterprises directly targeted, but also to the retail betting arms of omnichannel operators, which are often supported by more profitable online casino departments.
Nonetheless, traders have been investing heavily in Entain, Flutter, Playtech and Rank Group this afternoon, and the share price of each of these companies is significantly higher than it started the day.
The Rank Group's stock market success is easiest to explain.
Buffers
The UK-based company operates 56 Grosvenor Casinos and 96 Mecca Bingo clubs in the country as the core of its business - the Bingo sector saw its 10% tax abolished, while casino gaming duty has been frozen for the next fiscal year.
Like many, the operator also runs an online arm, which is the fastest growing of the company's revenue channels, but still contributes only around 29% of the company's overall revenues according to latest Q3 results.
For Entain, Flutter and Playtech, the situation is less clear, as each rely far more on the online casino market.
Of course, Entain and Flutter retain a hefty presence on UK high streets, despite pre-Budget warnings and closures.
For provider Playtech, its supply of online bingo platforms and technology means it too has a buffer of sorts, and earlier this year, the company teamed up with ProgressPlay to launch a new bingo platform on over 120 UK gambling sites.
A wider lens
Zooming out, there is a similar shape to the three-monthly figures for these three companies, and while each have recovered well this afternoon, surpassing their opening price, they have also all suffered a fairly consistent bleed of share price over the course of the Budget lead-up.
If prices had already hit their rock bottom in reflection of industry anxieties, it may be that despite that dramatic 40% figure, previous fears about the rate reaching 50% may have sugared the pill for traders.
A return to the mid-summer highs for all these companies would require an even starker recovery to the ones we're currently seeing.
And not all are following the trend. William Hill-operator Evoke is still suffering a downturn, despite a slight and temporary recovery immediately after the Chancellor finished her address.
Before the tax hikes were confirmed in today's budget announcement, Flutter had already announced the closure of 57 Paddy Power betting shops across the UK and Ireland
