Labour’s lingering over the decision to hike tax on the gambling industry has escalated fear from the sector, with Evoke now warning of the major impact it could have on jobs.
A somewhat bewildering decision to delay the UK budget until the end of November has intensified trepidation around UK tax rises and has threatened the future of hundreds of betting shops on the UK high street.
First reported by The Times, Evoke has warned of the crippling impact it could have on the high street as the operator considers closing between 120 and 200 William Hill betting shops, putting up to 1,500 jobs at risk.
These fears circulate as it becomes increasingly likely that the gambling industry will be hit with a tax rise when Chancellor Rachel Reeves unveils her autumn budget on 26 November.
At the recent Labour Party Conference, Reeves told the media that gambling companies must pay their “fair share”, while voices across the political spectrum have applied further pressure.
Retail headwinds
The threat of tax rises will be ominous for a UK retail sector that has continued to navigate challenging headwinds fuelled by the continued evolution of player trends and a tough economic climate.
Evoke’s UKI retail revenue dropped 2.4% YoY to £252.2m, as the group cited challenging high street conditions and a drop in football wagers following tough YoY comparatives. However, the sector did return to growth in Q2 following the rollout of 5,000 new gaming machines.
Overall, Evoke’s UKI revenue fell by 1.4% year-over-year in H1 to £588.4m.
For comparison, Entain also recorded a 2% dip in its UK retail operations over the same period.
Meanwhile, machine expansion was a key ingredient for Rank Group’s early 2025 success, which has a strong presence on the UK high street. The group declared an 11% increase in like-for-like net gaming revenue to £795m for the year ended 30 June 2025, following land-based and digital growth.
Speaking on the threat of tax increases during Evoke’s earnings call, CFO Sean Wilkins urged the Government to take a “balanced approach” to potential tax increases to protect the industry.
“Increased tax beyond a certain point we know leads to black market growth, which leads to less tax take and zero player protection and is completely against the objectives of the Government. This is not speculation, this is evidenced in the Netherlands,” he said.
In the Netherlands, tax intake from both the land-based and online gaming sectors has decreased after the Dutch Government increased tax on gross gaming revenue to 34.1%.
Alongside Evoke, other key operators in the UK have urged Reeves to proceed with caution when it comes to taxing the UK market.
Entain’s CEO, Stella David, also cited the dangers of “unintended consequences”, such as the rise of the black market, and pointed to early challenges in the Netherlands.
“We shouldn’t forget, we’re a great British company that generates a huge amount of tax for the government. We were a top 20 taxpayer anyway. And I think we should be proud of the success that this company generates not only here in the UK, but in many other markets,” she added.
Meanwhile, Flutter has told investors that the UK Government’s ongoing Gambling Act review may result in “more onerous regulation”, which could impact its operations, on top of the wagering restriction limits and mixed product promotion ban set to be implemented next year.
According to the Betting and Gaming Council, the UK gambling market generates £4bn in tax annually and supports 109,000 jobs.
