Bookmakers across the United Kingdom warned politicians that the new Machine Games Duty would be to the detriment of the sportsbetting industry. Now, the prophecy is being fulfilled. William Hill, one of the most successful bookmakers in the United Kingdom, has announced its plans to close over 100 betting shops across the country due to the rise in taxes.
The new Machine Games Duty will require betting shop owners to increase their taxes from 20% to 25%. According to William Hill, the tax is likely to cause a redundancy for over 420 employees that work in the company’s betting shops across the United Kingdom.
“While historically we have taken a measured ‘wait and see’ approach to loss-making shops, the impact of the announced increase in MGD makes it less likely that the performance of current and expected loss-making shops can realistically be turned around,” reads a statement from the bookmaker. “As a result, we intend to close a portfolio of 109 shops before the end of the year.”
Initially, when bookmakers stated that the tax would cause closures, it was thought that they were simply making empty threats. Now, William Hill is delivering. The closure of betting shops will certainly be felt, as less money will be returned to the community via gambling revenue. However, this could be the intended result.
For years, responsible gambling advocates were concerned about the proliferation of gaming machines in betting shops, as more games were linked to higher problem gambling rates. Now that betting shops will be shutting down, there will be fewer pokies, and it may cause a decline in gambling addiction. More bookmakers are likely to follow suit in coming months.
UK bookmakers like Ladbrokes, Paddy Power and Betfred may also have to close shops and make some staff members redundant. If this is the case, the companies that have entered the Australian market (such as Betfred and Ladbrokes) may place more focus on their overseas online operations.
About the Author
