UK Bookmakers Prepared to Cut Odds amid Planned Tax Hikes

^{Pictured: Per Widerström, CEO of Evoke Plc}

UK betting firms have warned that potential tax increases in the upcoming budget could lead not only to betting shop closures and job losses, but also to worse conditions for customers, Bloomberg reports.

Per Widerström, CEO of Evoke Plc (owner of the William Hill chain), said the company is considering policy changes — including reducing odds for customers — to offset the possible rise in taxes. To retain players, he also suggested the company may need to offer more bonuses.

According to him, if taxes increase significantly, operators will have to reassess their investment plans in the UK market and review current expenses, including those related to retail operations. Widerström added that the industry could be looking at “tens of thousands of employees” at risk.

Other companies have also warned of potential fallout. Betfred pointed to risks for an already stagnant market, while Sky Betting & Gaming (Flutter) has relocated part of its operations to Malta in anticipation of negative effects from a possible tax overhaul.

Finance Minister Rachel Reeves previously said there is “a case” for raising gambling taxes, though she has not yet specified the parameters. An August analysis by the Institute for Public Policy Research (IPPR) estimated that the government could raise an additional $4.18 billion by increasing taxes on online slots, bingo and poker from 21% to 50%, raising machine gaming duties from 20% to 50%, and increasing the tax on sports bets (excluding horse racing) from 15% to 25%.