British bookmakers became the latest victims of pre-budget anxiety after a report that the Treasury is considering a £3 billion tax raid on the sector wiped billions from the market value of its biggest players.

Entain, Flutter, Evoke (formerly 888.com), Playtech and Rank Group suffered steep share price falls as trading opened on Monday, initially erasing more than £3.5 billion from their collective market value.

The sell-off was prompted by a report published in The Guardian over the weekend suggesting that Rachel Reeves was facing pressure from two influential think tanks to raise taxes on the industry to help plug a £22 billion “black hole” in the public finances.

The Social Market Foundation suggested lifting online casino gaming taxes from 21 per cent to 42