These FTSE 100 stocks have been big winners for the UK budget.

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One FTSE 100 company rose above others following the UK budget announcement on Wednesday (October 30). The stock in question was Entain (LSE:ENT).

The stock price has fallen 27% since the beginning of the year. But the chancellor's announcement of tax hikes sent shares soaring nearly 9%.

I was out of breath.

Rachel Reeves approached the new government's first budget with the goal of finding $40 billion in taxes. With a promise not to target workers, the company was put squarely in the spotlight.

Before the announcement, several think tanks recommended raising taxes on gambling. The Social Market Foundation has proposed increasing taxes on online casinos from 21% to 42%.

Entain is one of the world's largest betting companies, and they may be at the forefront. But that announcement never came out. Taxes on gambling will remain the same.

As this became clear, the stock price jumped from 7.25 to 7.70 per share. And the stock ended the day 9% higher than it started.

Meaning of Entain

The Entains website shows investors how helpful the latest news can be. Taxes are the company's biggest single expense, and it says it paid $529 million in UK taxes in 2023.

For context, that's about twice the free cash flow the company generated last year and nearly five times what it distributed in dividends. The potential increase would have been significant.

Adding another $529 million would not be far from the $40 billion the Prime Minister was seeking, but would have been considered. So Entain shareholders will be happy.

So it's easy to see why investors react positively to the latest news. But with stock prices still well below January levels, is this news a buying opportunity?

Should I consider purchasing it?

Entain occupies an attractive position in the online gaming industry. And the continued popularity of this market was reflected in the company's third quarter trading update earlier this month.

Nevertheless, it is not a stock I am interested in. The company may have avoided UK tax increases, but there are far more external issues to keep an eye on.

Brazil's regulatory environment is expected to change from 2025 onwards, which could be challenging. The same goes for the Netherlands' new deposit rules.

I think this kind of thing will be a constant challenge for business and there isn't much that can be done about it. That's why I don't have any stocks to buy in my stock list.

roll the dice

Avoiding tax increases that reportedly have broad public support is a big win for Entain. And it's no surprise that stock prices are rising as a result.

The stock still looks cheap at about 5x EBITDA. But in this case, given the nature of the business, you might be happier investing elsewhere.

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