UK bookmaker William Hill has seen its former profits go to 44 million pounds of new taxes under Britain’s new gaming regulations.
The bookmaker was also hurt by new UK rules on gambling machines.
Shares in the company posted a drop in pre-tax profits to £78.7 million even though revenues were broadly flat at £808.1 million. Operating profits declined by 12 percent to £155.7 million. That figure was hurt by a new 15 percent tax on online gambling and an increase in taxes on gambling machines from 20 percent to 25 percent. The new taxes cost the company 44 million pounds.
The introduction of new limits on wagers of more than £50 on controversial gaming machines known as fixed odds betting terminals has also hurt the bookie.
Hill now says the gaming machine restrictions could have a greater impact during the second-half than originally expected, and forecast the decline could be between £5m and £10m more than it had initially estimated.
Meanwhile, William Hill has acquired a 29.4 percent stake in Luxemburg-based NeoGames to enter the emerging online lottery market.
The London-based company, which posted a 12 percent fall in first-half operating profit, has also cautioned that it expects the gaming machine limit to hurt its UK retail business in the second half.
William Hill said it paid $25 million (£16.12 million) in cash for its stake in NeoGames, the online lottery software and services provider which currently focuses on the United States.
“This agreement gives William Hill good optionality in a new market that is increasingly attractive to gambling customers,” Chief Executive James Henderson said.
William Hill said it had an option to buy the remaining 70.6 percent of NeoGames, exercisable after three or five years. It said it also agreed to fund a $15 million working capital facility if required.
