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

Flutter Entertainment plc (NYSE:FLUT) ranks among the best misdeed stocks to bargain successful 2026. Benchmark reaffirmed its Buy standing connected Flutter Entertainment plc (NYSE:FLUT) but reduced its terms people to $285 from $310 connected December 1. Benchmark believes that Flutter’s medium-term profitability volition beryllium importantly impacted by the important gaming taxation increases announced successful the UK Budget, which are scheduled to commencement adjacent year.

According to the latest budget, online gaming taxation volition emergence from 21% to 40% by 2026, a 90% increase. Meanwhile, sports betting work would leap from 15% to 25% the adjacent year, representing a astir 67% increase. Following an extended lobbying run by the racing industry, the horserace betting interest volition proceed astatine 15%, some online and successful stores. The UK Treasury anticipates the bundle to make an further £1.1 cardinal per twelvemonth successful gross by 2029.

In bid to contend with these taxation increases, Flutter’s absorption has projected a two-phase strategy for mitigation that combines short-term cost-cutting initiatives with longer-term advantages expected from scale, operational savings, and imaginable market-share gains.

Benchmark points retired that contempt these attempts astatine mitigation, the combined effects of the taxation rises connected sports betting and iGaming represent a important structural alteration for the UK market.

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

While we admit the imaginable of FLUT arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This nonfiction is primitively published at Insider Monkey.