William Hill to close 200 betting shops in UK, reports say

Evoke aims to reduce costs ahead of any potential rise in gambling tax.

UK.- A week ago, Entain CEO Stella David warned that a rise in gambling tax could lead the company to close betting shops in the UK. No such rise has yet been announced, and chancellor Rachel Reeves won’t announce the unveil autumn budget until November 26, but Evoke, one of Entain’s main rivals, is reportedly planning mass closures anyway.

The Times has reported that the London-listed operator has confirmed that it intends to close up to around 200 betting shops. The decision is expected to impact on thousands of workers, although the company is reported to have said it would seek voluntary redundancies and redeployment where feasible.

The former 888 Holdings bought William Hill’s UK assets in 2022 from Caesars Entertainment, which had acquired the British heritage betting brand globally the previous year. Caesars kept hold of the North American sportsbook operation.

While there were signs of an improvement in its financial situation in Evoke’s results for the first half, it remains saddled with debt due to the William Hill acquisition. The announcement of betting shop closures reflects a need to reduce costs amid falling foot traffic.

The retail betting shop sector has been facing challenges since 2019, when the UK government reduced the maximum stake on Fixed-Odds Betting Terminals (FOBTs) from £100 to £2. William Hill closed 700 shops that same year. The rise of online gamblingn has also accelerated the decline in the popularity of physical betting shops.

Evoke may have made the same decision regardless of the speculation about the possibility of an imminent UK gambling tax rise, but the announcement ahead of the November budget may be badly timed. It could weaken the industry’s argument that a tax rise would lead to job losses if the jobs are being cut anyway.

Gavin Kelleher, a gaming analyst at Goodbody, told the BBC that other major brands like Betfred and Entain’s Ladbrokes and Coral are likely to be also planning closures, predicting that 2,000 to 3,000 UK betting shops will close. That would over half of the 5,931 betting shops in operation, according to a data from the Gambling Commission from March 2024. That raises the possibility that any goverment tax rise could end up being seen more as a convenient excuse on which to lay the blame for closures, which some see as a market correctionn after a period of over expansion and saturation in the years prior to 2019.

Evoke has reiterated its commitment to improving retail performance but acknowledged the challenges ahead. “As a regulated and licensed UK operator, we are mindful of potential tax increases in the forthcoming budget,” a spokesperson said. “As part of our ongoing planning, we are assessing the potential impact of different tax scenarios on our UK operations. This includes the difficult but necessary consideration for further shop closures.”

See also:

See also: Entain CEO warns UK gambling tax rise could lead to betting shop closures