UBS sees 0.6% hit to Flutter FY25 group EBITDA if Maryland hikes betting tax

UBS analyst Ben Shelley notes that Maryland’s budget proposal includes a hike in the state’s sports betting tax rate to 30% from 15%. The analyst, who notes that the deadline for the budget to be approved will come near the end of March, sees a potential impact to Flutter Entertainment (FLUT) of about $20M post 50% mitigation, in line with Illinois, which equates to 0.6% of the firm’s FY25 group EBITDA estimate. UBS has a Buy rating and $320 price target on Flutter shares.