UK gambling tax hike impacts major operators in Gibraltar

Increased taxation on remote gaming in the United Kingdom is impacting major gambling operators, particularly those with significant operations in Gibraltar. Following the UK government's decision to raise the remote gaming duty from 21% to 40%, several large companies have reported financial shifts.

Entain, which owns brands such as Ladbrokes and Coral, reported a 2% decrease in underlying profits to £479 million, despite a 7% growth in online business revenue. The company is also undergoing a restructuring plan that includes cutting approximately 500 jobs globally. Similarly, Evoke, the owner of William Hill and 888, saw adjusted profits fall by 10% to £150.2 million, citing an additional £46 million in gaming taxes. Evoke is also restructuring, which includes closing roughly 270 William Hill betting shops in the UK.

While some analysts note that the largest operators have managed to adapt by cutting expenses rather than passing costs to consumers, smaller operators appear more vulnerable. For instance, Betfred announced the closure of over 130 shops, affecting approximately 600 jobs, due to the increased tax burden. Despite recent stability in Q2, market analysts maintain a cautious outlook, predicting a potential 12% market decline by 2027.