Anticipated Decline in Post-Euro 2024 Football Betting at William Hill Highlighted; Reeves Ponders Tax Increase
The UK gambling sector is bracing for potential tax increases in the upcoming Autumn Budget 2025, with the Remote Gaming Duty (RGD) being a key focus. Evoke, the group behind brands such as William Hill and 888, is among the companies that could be significantly affected by these changes.
Cost Pressures Mounting for Evoke
Evoke reported a decline in revenue from sports betting in the UK by 1.4% in the first half of 2025, a trend partly attributed to safer gambling measures introduced last year. The company is implementing cost-reduction measures, including using automation and artificial intelligence for player safety and fraud detection. Greater cost pressures, including from national insurance contributions, national minimum wage, and tax changes in Romania, are also affecting the business.
In a move to boost its retail arm, Evoke rolled out 5,000 new gaming machines across its betting shops. However, the company unveiled a pre-tax loss of £64.7 million for the period, narrower than the £143.2 million loss a year earlier. Evoke shares rose 0.8% or 0.5p to 62.80p on Wednesday, but have climbed 6% earlier in the morning and 11% in the last year. Across its global operations, Evoke's total sales rose 3% year-on-year to £887.8 million.
Anticipated Tax Hikes and Their Implications
Raising RGD from 21% to 50% could generate approximately £1.6 billion annually for the government, addressing fiscal gaps and enabling social programs like poverty alleviation. However, for companies like Evoke, these changes could lead to higher operating costs, potentially reducing profit margins and prompting strategic shifts in pricing, marketing, or product offerings to maintain customer retention.
The sharp duty increase may push operators to reassess their business models, possibly leading to consolidation or withdrawal of less profitable offerings. Higher taxation could incentivize some operators to further offshore activities to minimize tax liabilities since many online gambling firms already benefit from lower effective tax rates and VAT exemptions.
Impact on Consumer Behavior
Increased costs for operators could result in fewer promotions, higher prices, or limited game variety, which may reduce betting volumes or drive consumers to less regulated or unlicensed platforms. Some consumers might shift to horseracing or other segments with relatively lower tax burdens or switch to offshore operators if domestic offerings become less attractive or affordable.
Responsible gambling initiatives tied to tax reforms might increase consumer awareness and reduce high-risk betting, but this depends on the implementation of accompanying industry controls.
Implications for Evoke and Its Brands
For Evoke and its brands William Hill and 888, this landscape suggests potential profit compression due to higher tax expenses. A need for adaptive strategies to sustain competitiveness, such as emphasizing compliance and responsible gambling while finding operational efficiencies, is evident. Risks of market share loss if customers migrate to less taxed competitors or offshore sites, unless mitigated by brand loyalty or enhanced service offerings, are also present.
In conclusion, while the tax hikes aim to increase public revenue and reduce gambling harms, they will likely strain operators’ finances, influence market structure, and alter consumer betting patterns in the UK gambling sector. The industry must adapt to these changes to ensure continued growth and compliance with responsible gambling measures.
