Evoke has said it is considering closing retail shops should Chancellor Rachel Reeves follow through with the threat of tax increases on the sector.
The company’s comments follow similar warnings from Entain, whose CEO Stella David revealed in an interview with The Times last week that the multi-brand operator could be forced to focus investment on other markets and close retail shops.
Over the weekend, a report in The Sunday Times suggested the parent company of William Hill and 888 is also contemplating shuttering shops due to the possibility of increased taxes next month when Reeves announces the Autumn Budget.
The report noted that the potential closure of up to 200 William Hill shops would put up to 1,500 jobs in jeopardy.
Commenting on the speculation, evoke told EGR it was “assessing the potential impact” tax increases would have on the firm and that it could not rule out the shuttering of shops.
Evoke’s statement read: “We are mindful of potential tax increases in the forthcoming budget which would impact investment in the UK and drive more customers to the black market.
“As part of our ongoing planning, we are assessing the potential impact of different overall tax scenarios on our UK operations.
“This includes the difficult but necessary consideration for shop closures.”
Last month’s Labour conference added fuel to the fire regarding potential tax increases, with Reeves saying the gambling industry needed to “pay its fair share”, while more than 100 Labour MPs have signed an open letter backing the tax rises on the sector.
The chancellor’s comments followed a Treasury consultation that proposed aligning pool and general betting duty and remote gaming duty. As it stands, general betting and pool betting is taxed at 15%, while remote gaming duty is taxed at 21%.
Think tank the Institute for Public Policy Research recommended doubling betting duty to 30% and increasing online casino to 50%, claiming £3.2bn could be raised from the sector, which former Prime Minister Gordon Brown noted could be used to help tackle child poverty.
However, the industry fought back. Betting and Gaming Council CEO Grainne Hurst has said raising taxes is not an “easy solution” and would push players towards the black market, with the trade body also pointing out its members already contribute £6.6bn to the economy.
The post Evoke considers shutting shops amid gambling tax hike threat first appeared on EGR Intel.
Up to 200 outlets and 1,500 jobs at risk at William Hill as 888 parent company weighs up its options ahead of November’s Autumn Budget
The post Evoke considers shutting shops amid gambling tax hike threat first appeared on EGR Intel.