(Bloomberg) — UK gambling stocks slumped on Monday following a report that Chancellor Rachel Reeves may be weighing proposals to increase taxes on the industry by as much as £3 billion ($3.9 billion).

Shares in Ladbrokes-owner Entain Plc dropped as much as 15%, while Grosvenor casinos operator Rank Group Plc fell nearly 7%. Evoke Plc, owner of the William Hill betting brand, slid as much as 16%. New York-listed Flutter Entertainment Plc tumbled in late Friday trading, closing down 8.8%, in an initial reaction to the report in the Guardian newspaper.

UK Treasury officials are understood to be weighing proposals put forward by two influential think tanks to double some of the taxes on online casinos and bookmakers, the Guardian reported late Friday. No decision has been made, but an announcement could be included in this month’s budget, the newspaper said, citing sources familiar with the discussions.

Citibank Inc. analyst Monique Pollard said such potential changes to UK gambling taxes could have a “material” impact on Flutter and Entain’s earnings, although Jefferies analyst James Wheatcroft called the report “unrealistic.”

“The proposals apparently being considered would all but wipe out bookmaker profitability in the UK, per our estimates,” Jefferies’ Wheatcroft added.

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