William Hill says the government's decision to cut the maximum stake at fixed-odds betting terminals is the reason it will close 700 betting shops across the UK starting later this year.
A statement from the company read, “this follows the government's decision to reduce the maximum stake on B2 gaming products to £2 on April 1 2019. Since then the company has seen a significant fall in gaming-machine revenues, in line with the guidance given when the government's decision was announced in May 2018.”
A British Horseracing Authority spokesperson said, “Although today's news is broadly in line with previous announcements, we would like to express our sympathy to those whose roles have been placed at risk by William Hill's decision. We will continue to focus our energies on working with the betting industry to develop a future partnership based on social responsibility and mutual interest.”
William Hill in March reported a pre-tax loss of £721.9-million in 2018 compared with a profit of £146.5 million the previous year, after it took an £882.8 million hit on its retail operations in light of the FOBT stake reduction. In its most recent trading update since the stake cut came into effect, William Hill said gaming net revenues dropped 15% in the 17 weeks to Apr. 30, with wider retail turnover down 7%.
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