The short-lived ITV Win platform is set to become the latest victim of the UK’s iGaming tax hike.
Launched just days before Rachel Reeves confirmed an almost doubling in remote gambling tax to 40% in November, an announcement on the platform informed players that ITV Win Bingo and Spins will be permanently closed from 12pm on 5 May.
The decision to shut shop was made after the brand’s operational partner, Richmond Atlantic, confirmed its own closure due to financial pressure from the tax hikes.
Alongside an increase in remote gaming duty from 21% to 40%, which came into effect on 1 April, a new general betting duty rate for remote betting will also be introduced from April 2027 at 25%.
Ahead of ITV Win’s launch in November, Richmond’s Chief Executive Officer, Adam Joseph, declared that ITV Win would ‘redefine the iGaming landscape’.
However, a spokesperson for the firm confirmed to iGaming Expert that the business is set for closure, ‘primarily down to the unsustainable tax rises on the UK market’.
The spokesperson added: “Sadly, with the tax rise that was announced in November and became effective this month, despite a number of mitigations that we put in place for early trading, it has become clear that the business is not able to continue in the new tax environment.
“We have explored all options, including the sale of Richmond to another UK-facing operator, but this has not come to fruition, and therefore we have made the decision to wind down the business.”
Mitigation plans begin to take hold
Operators, both large and small, have been forced to tighten their belts over fears of the financial impact of the tax changes.
Evoke, the owner of William Hill, is planning to close around 200 betting shops from May in light of the pressures. Meanwhile, other operators have slashed marketing spending and pulled high-profile sponsorship deals, such as Coral’s sponsorship of the Cheltenham Festival.
Although Richmond Atlantic is the biggest victim of the situation in this instance, ITV Win’s platform provider, Gaming Innovation Group, and bingo supplier Pragmatic Play are also set to miss out on vital revenue once the platform is shut down.
An ITV spokesperson told iGaming Expert: “Sadly, we understand that Richmond Atlantic, the operator of the ITV Win Bingo and Spins website, is unable to continue trading and so the business and the site are being wound down.
“All customers have been informed of the closure and asked to withdraw their money from their accounts. Anyone who is unable to do so within the allocated period will then be contacted manually to withdraw their funds, in line with UKGC regulations.”
Market consolidation on the horizon?
Industry executives from companies such as FDJ United and Entain have predicted a consolidation of the UK market, with smaller operators falling by the wayside, and this announcement begins to demonstrate that this is already taking place.
What’s most notable in this case is that the pull of ITV was not enough to tempt another operator to take over the brand via a deal for Richmond Atlantic, given that it has access to IPs for some of the most popular game shows on British television, such as The Chase, Tipping Point and Who Wants to Be a Millionaire?
As the popularity of live game shows continues to grow, this stable should have presented a mouthwatering proposition. But it’s clear that companies are hesitant to commit to the type of financial outlay that would have been required to take over ITV Win in this current tax climate.
