The UK’s three largest gambling operators lost £4bn in market value last week in anticipation of the Chancellor increasing the tax burden on the sector as part of the upcoming Budget.

Evoke saw its total share value decrease by £23m on 8 August and Entain lost £37m, while New York-listed Flutter shed bucket-loads as investors rushed to sell off shares.

“The National Institute of Economic and Social Research has warned that the Chancellor is on course to miss her borrowing targets by £41.2bn, leaving her with little choice but to raise taxes or cut spending,” reported Business Matters.

“Calls for the sector to pay more intensified this week after former chancellor Gordon Brown said additional duties could help fund the removal of the two-child benefit cap and lift more families out of poverty. Citing analysis by the Institute for Public Policy Research, Brown argued that reforms to gambling taxation could raise up to £3.2bn.”

The potential tax increase comes as Rachel Reeves looks to bridge a £50bn budget shortfall, however stakeholders such as Flutter’s CEO Peter Jackson warned “if you continue to push tax rates up, you actually see a reduction in the tax take.”