Shares in online operator bwin.party had fallen by around 11 per cent to a price of 89.3p when trading on the London Stock Exchange came to a close on Friday, October 31.
The stock slumped following news that VAT on online betting in the EU will be levied on a point-of-consumption basis from next year.
A number of EU member states have exempted online wagering from VAT but operators based in bwin.party’s native Germany would be affected by the move.
An increased tax bill would hit next-year earnings, with some analysts suggesting a 15 per cent reduction in earnings forecasts.
By early trading on Tuesday, the share price had recovered by around six per cent to 96p.
