Benchmark Retains Buy Rating on Flutter (FLUT) Despite UK Regulatory Changes

Flutter Entertainment plc (NYSE:FLUT) ranks among the best sin stocks to buy in 2026. Benchmark reaffirmed its Buy rating on Flutter Entertainment plc (NYSE:FLUT) but reduced its price target to $285 from $310 on December 1. Benchmark believes that Flutter’s medium-term profitability will be significantly impacted by the substantial gaming tax increases announced in the UK Budget, which are scheduled to start next year.

According to the latest budget, online gaming tax will rise from 21% to 40% by 2026, a 90% increase. Meanwhile, sports betting duty would jump from 15% to 25% the next year, representing a nearly 67% increase. Following an extensive lobbying campaign by the racing industry, the horserace betting fee will continue at 15%, both online and in stores. The UK Treasury anticipates the package to generate an additional £1.1 billion per year in revenue by 2029.

In order to contend with these tax increases, Flutter’s management has proposed a two-phase strategy for mitigation that combines short-term cost-cutting initiatives with longer-term advantages expected from scale, operational savings, and possible market-share gains.

Benchmark points out that despite these attempts at mitigation, the combined effects of the tax rises on sports betting and iGaming constitute a substantial structural change for the UK market.

Flutter Entertainment plc (NYSE:FLUT) operates as a sports betting and gaming company. It offers sportsbooks, iGaming products such as blackjack, roulette, slot machines, poker, and rummy, as well as lottery products, and sports betting products.

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Disclosure: None. This article is originally published at Insider Monkey.