Entain, a major player in the gambling sector, has recently signaled potential challenges ahead. Just last week, the company’s CEO Stella David expressed concerns over a possible rise in gambling taxes that might force the closure of betting shops across the UK. This speculation comes in anticipation of the autumn budget, which will be unveiled by Chancellor Rachel Reeves on November 26. Meanwhile, Evoke, another key competitor in the industry, is reportedly taking proactive steps by planning the closure of approximately 200 betting shops, regardless of the impending tax decisions.
This strategic move by Evoke is expected to have significant ramifications, particularly affecting thousands of employees. The company, however, has stated its intention to pursue voluntary redundancies and redeployment whenever feasible, seeking to mitigate the impact on its workforce.
The backdrop to these developments is the acquisition journey of William Hill’s UK assets. In 2022, Evoke, formerly known as 888 Holdings, purchased these assets from Caesars Entertainment. This move followed Caesars’ global acquisition of the William Hill brand, though they retained the North American sportsbook operations.
Despite some positive signs in Evoke’s financial performance during the first half of the year, the company remains burdened by the debt incurred from the William Hill acquisition. The planned closures are part of a broader effort to reduce costs, reflecting the ongoing struggle with declining foot traffic in physical betting locations.
The challenges for retail betting shops have been mounting since 2019, following the UK government’s decision to slash the maximum stake on Fixed-Odds Betting Terminals (FOBTs) from £100 to £2. This regulatory change led to the closure of 700 William Hill shops that year alone. Furthermore, the rapid growth of online gambling has continued to erode the market for physical betting establishments.
Given this context, Evoke’s decision appears to be driven by more than just speculation about potential tax hikes. The timing, however, raises questions about the industry’s narrative that tax increases alone will force job cuts, especially when closures are already underway. This dynamic was highlighted by Gavin Kelleher, a gaming analyst at Goodbody, who suggested that other major players, including Betfred, Ladbrokes, and Coral, are likely contemplating similar closures. Kelleher forecasts that between 2,000 to 3,000 betting shops could disappear from the UK market, which currently comprises 5,931 outlets according to March 2024 data from the Gambling Commission. This trend suggests that the industry might be experiencing a market correction after a period of overexpansion and saturation prior to 2019.
Evoke maintains its commitment to enhancing the performance of its retail operations but acknowledges the tough road ahead. A company spokesperson affirmed, “As a regulated and licensed UK operator, we are mindful of potential tax increases in the forthcoming budget. As part of our ongoing planning, we are assessing the potential impact of different tax scenarios on our UK operations. This includes the difficult but necessary consideration for further shop closures.”
The situation reflects broader shifts in the betting and gambling landscape, where companies must adapt to evolving regulatory environments and changing consumer behaviors. While online platforms continue to capture a growing share of the market, the fate of traditional betting shops remains uncertain. For now, Evoke’s move signals both a response to immediate financial pressures and a strategic positioning for future industry dynamics.
As the sector braces for possible regulatory changes, differing perspectives emerge on the necessity and impact of these adjustments. Some analysts argue that the closures are an inevitable response to market forces, while others view them as preemptive actions against potential tax burdens. The industry awaits further clarity from the government’s forthcoming budget announcement, which will likely shape the next phase of strategy for both Evoke and its competitors.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
