Evoke urges ministers to think carefully before imposing fresh gambling taxes, blaming last year’s Budget for 270 shop closures as the industry warns that higher duties are putting jobs, venues and investment at risk.
The owner of William Hill has warned the Government against further tax increases on Britain’s gambling industry, arguing that higher duties have already contributed to hundreds of betting shop closures and could put further pressure on jobs and high street businesses.
Evoke, which operates William Hill and 888, said the closure of approximately 270 shops over the past year demonstrated the impact of rising gambling taxes on the sector, as the industry braces for the possibility of further increases in next week’s Budget.
The warning comes as Evoke prepares to be acquired by Greek gambling group Bally’s Intralot in a £243 million deal, which the company expects to complete by the end of this year or early next.
Per Widerström, Evoke’s chief executive, said the group had continued to focus on profitability despite substantial increases in gambling duties, particularly in the UK.
“The closure of 270 shops over the past year shows the real impact on jobs and livelihoods from higher industry taxation, and we urge the UK Government to carefully consider any further increases ahead of its forthcoming autumn Budget,” he said.
The dispute places fresh pressure on ministers as they weigh the potential revenue from taxing gambling more heavily against warnings from operators that higher costs could accelerate closures, reduce employment and reshape the high street.
Last year’s Budget introduced significant increases in taxes on online gambling. From April this year, remote gaming duty, which applies to online casino games, rose from 21 per cent to 40 per cent of a provider’s profits.
A new online sports betting duty of 25 per cent is also due to take effect from 2027, covering sports other than horse racing.
Evoke had warned that the changes could add as much as £135 million a year to its tax burden from 2027. The company announced its shop closures in April after reporting that it had sunk deeper into loss, with the reductions expected to help offset the additional costs.
The industry’s concerns have since broadened to the possibility of higher machine games duty, which applies to gaming machines including fruit machines, roulette machines and other slots. The Government is reportedly considering an increase in the levy at next week’s Budget.
Other major operators have already urged ministers to reconsider the proposals.
Entain, the owner of Ladbrokes, and Rank Group, which operates Grosvenor casinos, have warned that further tax increases could threaten the viability of betting shops and gambling venues.
Flutter, the group behind Paddy Power, added to the pressure on Tuesday by announcing plans to cut around 1,400 jobs across the UK and Ireland as part of a restructuring designed to mitigate higher betting and gaming duties.
Kevin Harrington, Flutter’s UK and Ireland boss, said the company could not “fully absorb” the impact of the tax increases without reducing costs.
The warnings underline the growing divide between the Government’s efforts to raise revenue from gambling and the industry’s argument that higher duties risk undermining the businesses expected to pay them.
For betting operators, the pressure is particularly acute because the tax increases are arriving alongside changes in trading conditions and continued competition for customers. Companies must absorb higher costs while maintaining the shop networks, staffing and services on which their businesses depend.
Evoke’s latest trading figures illustrate the challenges. The group reported third-quarter revenue of £406 million, down 7 per cent compared with the same period a year earlier. Excluding the impact of having approximately 270 fewer betting shops, revenue was down 2 per cent.
The company attributed some of the weakness to “customer-friendly sports results” at the beginning of the football season — industry shorthand for outcomes that produced higher winnings for punters and reduced operators’ margins.
The figures suggest that the business remains under pressure even before the full impact of the next round of scheduled tax changes takes effect.
Evoke’s proposed takeover by Bally’s Intralot adds another dimension to the uncertainty. The £243 million transaction would transfer ownership of the group as it navigates a more demanding tax environment and seeks to improve profitability.
For ministers, the challenge is to determine how far gambling operators can be taxed without accelerating the closure of physical venues or increasing pressure on employment. For the industry, the argument is that the consequences are already visible in shuttered shops and restructuring plans.
With the Budget approaching, Evoke’s warning adds to a growing campaign by gambling businesses for the Government to reconsider any further increases before imposing another financial burden on an already pressured sector.
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