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Read Full BioWilliam Hill is set to close up to 200 betting shops in the UK in response to expected tax increases on the gambling industry. The shop closures are part of a cost-cutting exercise as parent company Evoke looks to reduce its debt.
An Evoke spokesperson commented, “We are mindful of potential tax increases in the forthcoming Budget, which would impact investment in the UK and drive more customers to the black market.
“As part of our ongoing planning, we are assessing the potential impact of different overall tax scenarios on our UK operations. This includes the difficult but necessary consideration for shop closures.”
Insiders close to the company told the Times that between 120 and 200 shops are expected to close, putting up to 1,500 jobs at risk. At the moment, the company operates 1,200 shops across the UK.
Tax Increases Hitting UK Gambling Industry
Betting shops, similar to retail sportsbooks in the US, have already been hit hard by tax increases and limits. The UK reduced the maximum stake on fixed-odds betting terminals (FOBTs) in 2019 from £100 to £2, which had a significant impact on the profitability of betting shops.
Shops had already been limited to four FOBTs per location as part of gambling reforms in the country through the Gambling Act 2005. Critics have labeled the machines as the “crack cocaine of gambling” due to their addictive design and rapid losses. The £2 cap significantly reduced the impact of the machines and led to William Hill closing 700 stores shortly after the policy was implemented.
Recently, there have been increased calls on the gambling industry to contribute more to societal causes. Last week, UK Chancellor Rachel Reeves gave the clearest indication that she will include an increase in gambling taxes in the November budget.
There have been calls to increase the rate on sports betting from 15% to 25%, with slots targeted with a 50% tax, up from the current 21%. Former Chancellor and Prime Minister Gordon Brown said the increased revenue from taxes could be used to combat child poverty.
Reeves did not indicate what the new rate will be, but she did say that gambling companies “should pay their fair share of taxes, and we will make sure that happens.”
Entain Considers Closing Shops if Taxes Increase
Entain, the company behind some of the UK’s biggest betting brands, including Ladbrokes and Coral, also said it is considering closing shops if taxes increase. CEO Stella David said, “Every point of increase would actually have an impact that certain shops would become unviable … there is no level that does not have some consequence, the scale depends on how far it goes.”
The Betting and Gaming Council (BGC), of which Entain and Evoke are members, has also been outspoken against the tax increases. BGC CEO Grainne Hurst says tax increases will drive bettors to the black market and cost the UK economy thousands of jobs.
The closure of betting shops by the UK’s leading betting companies will significantly reduce their domestic staff and increase focus on online betting. Even the regulated UK industry has much of its staff and offices offshore. Evoke’s headquarters are in Gibraltar for tax purposes, and Entain has its base on the Isle of Man.
