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| William Hill blames tax on fixed-odds betting terminals for closures | William Hill blames tax on fixed-odds betting terminals for closures |
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| The UK's largest bookmaker, William Hill, is to close 109 shops, blaming the government's rise in betting tax on lucrative fixed-odds betting terminals. | The UK's largest bookmaker, William Hill, is to close 109 shops, blaming the government's rise in betting tax on lucrative fixed-odds betting terminals. |
| The chancellor raised machine games duty in last month's budget from 20% to 25% on machines that charge more than £5 to play, which campaigners have attacked for intensifying social problems related to gambling. | The chancellor raised machine games duty in last month's budget from 20% to 25% on machines that charge more than £5 to play, which campaigners have attacked for intensifying social problems related to gambling. |
| William Hill said around 420 jobs could be lost as a result of the shop closures. The gambling chain has 2,434 outlets across the UK. | William Hill said around 420 jobs could be lost as a result of the shop closures. The gambling chain has 2,434 outlets across the UK. |
| Ralph Topping, chief executive, said: "As a direct result of the government's unexpected announcement about an increase in machine games duty to 25%, we have reviewed shop profitability and will be closing a portfolio of 109 shops this year, putting c420 shop employees at risk of redundancy. | Ralph Topping, chief executive, said: "As a direct result of the government's unexpected announcement about an increase in machine games duty to 25%, we have reviewed shop profitability and will be closing a portfolio of 109 shops this year, putting c420 shop employees at risk of redundancy. |
| "This is particularly disappointing as, through the economic downturn, we have worked hard to grow our retail base but this further planned increase in indirect taxation makes this action necessary." | "This is particularly disappointing as, through the economic downturn, we have worked hard to grow our retail base but this further planned increase in indirect taxation makes this action necessary." |
| A report in February found more than £13bn was gambled on high-stakes machines last year by the poorest quarter of England's population. | A report in February found more than £13bn was gambled on high-stakes machines last year by the poorest quarter of England's population. |
| William Hill said in the wake of George Osborne's budget that the higher tax on the machines, dubbed the "crack cocaine" of gambling by campaigners, would cost it around £22m a year. Shares in William Hill and Ladbrokes fell sharply last month. Ladbrokes has also warned it will close shops, with the rival bookmaker making more than half of its profits from the machines. | William Hill said in the wake of George Osborne's budget that the higher tax on the machines, dubbed the "crack cocaine" of gambling by campaigners, would cost it around £22m a year. Shares in William Hill and Ladbrokes fell sharply last month. Ladbrokes has also warned it will close shops, with the rival bookmaker making more than half of its profits from the machines. |
| However, William Hill reported a further leap in the revenues from its betting websites, with stakes laid online by punters up 39% year on year. Gambling on mobile devices was up by 78%. But it said operating profits had fallen by 14%, which it partly attributed to two weeks out of 13 in the quarter when customers laid successful bets. | |
| Analysts said that closing stores would not affect William Hill's prospects unduly. Simon Gergel, at Allianz Global Investors, said: "Overall we think William Hill is well positioned for the future of the UK and international betting industry which is being driven increasingly by online betting." | Analysts said that closing stores would not affect William Hill's prospects unduly. Simon Gergel, at Allianz Global Investors, said: "Overall we think William Hill is well positioned for the future of the UK and international betting industry which is being driven increasingly by online betting." |
| Shares in the group rose just over 2% after the trading update, to 341p. | Shares in the group rose just over 2% after the trading update, to 341p. |