The UK betting industry could see a major shake-up with tax hikes predicted in remote betting and gaming. Some betting shops have already been closed recently, with bosses threatening that many more could soon follow.
The gambling industry could be facing a tighter squeeze by the UK government when it releases its next budget. In the face of reduced profit margins, closing physical betting shops may be inevitable.
Are Betting Shops Still Relevant?
With their potential closure, some may wonder if betting shops are still needed. The online casino and gambling market is thriving, with fewer people needing to gamble in person. Platforms such as Njord Nettikasinot showcase the incredible range of casinos that are now available. While betting on your phone is easier than ever, physical betting shops still have a place in UK society.
There is a history of them being places where people socialize and meet with friends, especially for the older generation who grew up with them. There are also those people who will always want to place their bets with a cashier and have a human interaction.
They can’t match the convenience of online casinos and sportsbooks but are still important for people. This also includes them being a place of work that employs many people throughout the UK.
What Could the Tax Hike Mean?
At this stage, it’s unclear how deeply the UK government will increase taxes but it looks certain they will. Due to cost pressures, Paddy Power has already announced that 57 of its shops will be closing in the UK and Ireland.
Both Betfred and William Hill could also be following suit. William Hill stated that up to 200 of its shops could face closure with tax rises. The reality for Betfred was even starker, with its co-founder saying that all 1,287 of its shops could close. That would cause 7,500 job losses.
It’s thought possible that taxes could go up as high as 50%. Betfred said over 300 of its shops were currently losing money, which would rise to over 400 with just a 5% increase. A large increase would see a rapid end to physical betting shops remaining on UK high streets.
Most of these betting companies do have popular websites but there is stiff competition in that market, both from fellow UK companies and abroad. If taxes continue to increase and companies are forced to make customers absorb some of these costs, it could lead even more UK bettors to offshore casinos and sportsbooks.
