William Hill Owner Evoke Confirms High Street Store Closures After Gambling Tax Hike
The owner of betting giant William Hill has officially confirmed it is shutting down high street shops in response to the government's decision to increase taxes on gambling firms in last year's budget. Evoke, which also operates the online betting brand 888, had previously issued warnings that it could close as many as 200 stores if the tax changes were implemented as part of efforts to bolster public finances.
Impact of Government Tax Increases
These closures follow Chancellor Rachel Reeves' announcement in November of sweeping tax hikes targeting online gambling companies. The government argued that the industry should contribute more, citing record profits and growing concerns over problem gambling across the UK. This move has placed additional financial pressure on betting firms, forcing them to reassess their operational strategies.
Evoke has not yet specified the exact number of sites that will be closed, but it had earlier indicated that up to 200 locations could be at risk if the tax increases proceeded. The company stated that it has acted "quickly and decisively" to mitigate the impact of the budget changes, which includes shutting loss-making retail stores and implementing broader cost-cutting measures across the group.
Broader Challenges for High Streets
High streets throughout the UK have already been struggling with numerous challenges, including rising rents, soaring energy bills, and a significant shift towards online shopping. This has led to the disappearance of banks, post offices, and various retailers from many town centres. Betting shops had remained among the most visible survivors, but this is now changing as tougher regulations and higher taxes squeeze profits.
The decision to close stores reflects a wider trend away from bricks-and-mortar betting, with more punters now placing wagers through mobile apps and websites. This trend accelerated during the pandemic and has not fully reversed, contributing to the decline in physical betting shop viability.
Evoke's Strategic Response and Financial Outlook
In December, Evoke launched a strategic review following the tax increases and confirmed it has already taken action by closing unsustainable retail stores and pushing through cost-saving initiatives. Chief executive Per Widerström commented: "We have moved quickly and decisively to execute on our mitigation plans, including the closure of retail stores that are no longer sustainable as well as broader cost savings. We will update shareholders on our progress and updated strategic plan in due course."
The firm expects to offset approximately half of the impact from the tax rises through store closures alone. It is also seeking to claw back savings by adjusting customer offers, renegotiating with suppliers, and scaling back operations in some markets.
Despite these challenges, Evoke reported encouraging final-quarter earnings for 2025, with group revenue reaching £464 million, a 7% increase from the previous three months. However, UK betting revenue experienced a significant slump, dropping by 22% in the final quarter. Total group revenue for 2025 is forecast at £1.786 billion, representing a modest year-on-year increase of around 2%.
This situation highlights the ongoing pressures facing the gambling industry and high street businesses amid regulatory changes and economic shifts.
