LiveScore Group Cuts Operating Loss Ahead of Increased UK Betting Tax

LiveScore Group reported an operating loss for the year ended March 31, 2025, but this was reduced from the year before as a result of improved turnover.

LiveScore operates Virgin Bet, LiveScore Bet and LiveScore Media. LiveScore Group’s turnover for the year was £206.3 million, up 15% from 2023/24. Operating loss was £26.7 million, which was cut from £50.7 million. EBITDA, defined as loss before tax, was £15.2 million, a reduction from £38.8 million.

Referring to the loss, LiveScore said in its filing of accounts at Companies House:

“This was in line with expectations and overall growth plans as the business incurred significant expansion and marketing costs. The reduced operating loss resulted from a gross profit increase that outpaced ongoing significant investment in marketing and the LiveScore brand.”

LiveScore Group operates Virgin Bet as a result of its demerger from Gamesys Group in 2019, which led to the formation of LiveScore Group. LiveScore Bet launched in the UK in 2021. LiveScore said the UK continues to be a key market.

UK taxation issue

Going forward, LiveScore will have to contend with increased taxation in that market. At the start of this month, remote gaming duty, paid on online casino bets, increased from 21% of gross gaming yield (GGY) to 40%.

In addition, general betting duty, paid on online sports bets, will go up from 15% of GGY to 25%; bets on horseracing will be exempt from this.

While LiveScore will have to pay the increased tax across both verticals, the group will not have to contend with balancing the higher online costs with ongoing retail costs that some of the more long-standing operators will have to contend with.

Earlier this month, reports emerged detailing how Entain is to close 39 of its Ladbrokes shops in Ireland as a result of cost pressures.

In October, Entain CEO Stella David told The Sunday Times the operator would need to review the possibility of shop closures in the UK and that it would have to consider its investment level in the country.

Reports later that month suggested Flutter Entertainment is to close 57 of its Paddy Power betting shops across the UK and Ireland; this was prior to the announcement of the tax increases in November.

A place for newer entrants

Prior to the increases being confirmed, Betfred Founder Fred Done said he did not see how Betfred’s retail operation could be sustainable “if rates went up to anything like 40%”.

An argument has been put forward that more recent entrants to the UK market will not be impacted as heavily by the increases, as they will not be as concerned with cutting existing workforces or scaling down more established operations such as retail.

Justin Park, Co-founder of Betty, touched upon this when using the example of Midnite. Park wrote on LinkedIn: “We’ve already seen how a changing regulatory landscape allowed nimble teams - like Midnite - to start taking material market share.

Instead of spending years refactoring legacy code just to stay compliant, they've managed to focus on delighting players through product innovation.”

Other markets

Aside from the UK, LiveScore exited the Netherlands market in November 2024, as a result of advertising restrictions and increased gaming taxation rates.

LiveScore also operates in South Africa, having launched there with Virgin Bet in February this year, after being granted a bookmaker license by the Western Cape Gambling and Racing Board.