Earlier this week, investors were warned that gambling stocks may not be the best bet this year. A planned tax hike for the industry is likely to cause a decline in profits, and investors are likely to suffer if they decide to buy shares in local gaming companies. 

Next month, a new budget will be introduced, and with it will come some new, steep taxes for offshore gambling operators. Ladbrokes and William Hill, while operating from offshore locations, are still listed on the London Stock Exchange. While they have been safe bets for investors in the past, this year may see a disappointing performance, due to the new taxes. 

Financial analysts Oriel have downgraded their gambling stocks. For example, Ladbrokes dropped nearly 2p and William Hill dropped 4p. The group also decided to remove Betfair from its list of recommended stocks. 

Rank Group is one of the few companies that has skirted the issue with shares rising by 4.1p. The company has recently acquired Gala, a group of land-based casinos and bingo halls, offering the company the chance to avoid a decrease in profits as a result of the new taxes.