William Hill Could Shut 200 Shops if Gambling Tax Hikes go Through

William Hill could remove up to 200 betting shops across the UK if the Chancellor of the Exchequer hikes the remote betting and gambling duty (RBGD) from 21% to 50% in her November budget.

The proposed gambling tax rises have been a bone of contention over the past few months, with bookmakers expressing their reservations over the implications it could have for the betting industry. Now, William Hill’s parent company, Evoke is preparing for all possible scenarios, and Rachel Reeves has hinted at the possibility of increasing taxes for operators.

It is thought that as many as 15% of William Hill’s total chain of 1,300 betting shops are at risk of closing down. Up to 1,500 jobs could be axed in the shake-up, and typically between five and 10 people work in a betting shop.

A “difficult consideration” to make

Evoke has ultimately been backed into a corner, but these are testing times for the betting industry. Formerly known as 888, Evoke, which acquired William Hill in a £2 billion takeover in 2022, admits that shop closures could be necessary, even though no formal decision has been taken.

A company spokesperson said: “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.”

Tackling the debt mountain

A glance at Evoke’s balance sheet makes for grim reading. The FTSE 250 company has amassed a debt pile of £1.8 billion, and it made a pre-tax loss of nearly £78 million in the first half of the year.

Fears have been mooted by industry experts that more betting shop closures could be in the pipeline if higher taxes are introduced. Figures have been routinely bandied about, and it has been calculated by the Institute for Public Policy Research (IPPR) that a change to gambling taxes could raise as much as £3bn to tackle child poverty.

William Hill could become the latest high street victim

High street betting, as we know it, could be drawing to a close. It now seems that William Hill could follow in the direction of other bookies who are also thinking of changing tack with their business approach.

Earlier this month, Entain CEO Stella David suggested the company could shut Ladbrokes and Coral shops across the UK depending on the level of increase in gambling taxes.

She said: “At the end of the day, we want to make a profitable global business. There are other markets we have to pivot to as being worthy of investment.

“There will be consequences. Having a dislocating increase in tax will have a dislocating impact on the industry.”

Remote gambling is taking hold

The surge in online gambling has, to a certain extent, diminished the relevance of high street gambling. A report carried out by the UK Gambling Commission (UKGC) indicated that revenues shot up from £4.2bn to £5.6bn between 2015 and 2018, while retail earnings were static.

Evoke is fully aware of customer behaviour, and this is a challenging period for the gambling industry. As far as the land-based bookie is concerned, the odds of survival are narrowing.