FTSE 100 Subdued; Entain, Flutter Respond to Budget Announcement

The FTSE 100 slipped 0.2% on Thursday morning as markets absorbed the latest news and data, including the impact of the UK Government’s Budget. 

European equities were mixed, with the DAX up 0.4% and the CAC 40 flat. U.S. markets are closed for the Thanksgiving holiday.

St James’s Place led the FTSE 100 risers, adding 1.8%, followed by Persimmon at 1.6% and Diageo at 1.4%. Imperial Brands fell 1.9%, while Burberry dropped 1.8% and LondonMetric Property declined 1.5%.

Debenhams Group drew attention after unveiling an executive bonus scheme that could see its chief executive receive almost £150 million if the company’s share price rebounds sharply. 

The payout would require the stock to climb from 11.5p to £3 within five years, disclosed as the retailer said its turnaround was “gathering real pace” following heavy loss reductions.

Meanwhile, the Government’s tax increases on online gaming and sports betting prompted immediate responses from major operators Flutter and Entain. 

Flutter said the changes, lifting online gaming duty to 40% from April 2026 and raising sports betting tax to 25% from April 2027, would have a “very significant impact,” estimating a pre-mitigation adjusted EBITDA hit of $320 million in 2026 and $540 million in 2027. 

The group expects first-order mitigation to reach 40% over time, with its UKI CEO calling the increases “a very disappointing outcome” that would benefit illegal operators.

Entain also criticised the measures, saying the higher taxes will have “a detrimental impact on the economic contribution of the gambling industry.”

 It expects an annualised £200 million cost to its UK&I online business before mitigation and warned that the changes risk accelerating the shift toward unlicensed markets.