Super Group CFO Alinda Van Wyk has said the upcoming UK tax hikes are “disappointing” but that the Betway parent is well positioned to handle the shift.
Speaking to EGR, Van Wyk confirmed the New York-listed operator had been able to outperform the UK baseline and built a moat to protect against the duty raises.
Remote gaming duty will jump from 21% to 40% in April, with remote general betting duty rising from 15% to 25% in April 2027.
It is expected the increases will see the long tail of smaller operators dwindle, as well as put further pressure on operations for those that remain in the market.
On the positive position and potential strategic advantages of the hike, Van Wyk said: “It is important to note we grew more than 60% in the UK, and the wider market grew about 3% last year.
“We have a little bit of enhanced market share. We delivered a very strong bottom line in the UK because we operate much more effectively. We know our marketing strategies, so we are better geared and in a better position for the tax hikes.
“In the 2026 guidance, we have obviously included the tax from the 40% hit from April. What we included is a mitigation of supplier deductions. We’ve got good profitability. We operate efficiently there for the time being.
“Towards the end of next year, I think the 25% of the market that is maybe not as profitable as us, might start to drop off, and then your marketing might become a bit less expensive because it’s not as competitive.
“We could even go for some M&A, but it must make sense. We could maybe pick up one or two bolt-ons to strengthen our UK core if we can integrate it quite quickly.”
The UK has already seen Aristocrat Interactive shutter its white-label operations, while major operators such as Entain, Flutter and evoke have all laid out mitigation plans.
Concerns have been raised the tax hikes will drive more players to the black market should licensed operators resort to softening their offerings.
The UK government has projected an additional £1.6bn to be generated in 2027-28 from the tax increases.
However, the Office for Budget Responsibility has said this likely to be a net yield of £1.1bn as operators pass on duty increases through their offerings, such as less attractive RTP rates on online slots.
Van Wyk added: “[The tax hike] is so disappointing. I do feel like the whole tax regime at the moment from the UK government is quite irrational. It’s trying to plug holes.
“Unfortunately, as an industry, we are on the wrong side of that. It will have a negative impact on the industry, and the tax authorities will lose out. And what I mean by that is illegal operators that do not pay tax will have the advantage. Most importantly, customers will also lose out
“I think the UK has got a well thought through regulatory regime now. They’ve worked with the operators to understand how to protect the customer. We put everything in place that they’ve asked us, we pay the tax.
“My view is this is totally irrational. I’ve never seen it, even in Africa, even in South Africa, where there’s been noise around the tax regime that could potentially change.
“It’s a process, it’s a lobbying, it’s understanding and sitting around a table. It’s a discussion. Everybody, in the end, must be in a good situation to have a balanced regime.”
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The post Super Group CFO says UK tax hikes are “disappointing” but opportunities abound first appeared on EGR Intel.
Alinda Van Wyk points out long tail of operators exiting UK could see marketing savings and potential M&A moves, as she notes black market is set to take advantage
The post Super Group CFO says UK tax hikes are “disappointing” but opportunities abound first appeared on EGR Intel.