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William Hill Blames Gambling Taxes for Lower Profits

William Hill logoLooks like 2015 wasn't as successful for some as it was for others. Well-renowned bookmakers, William Hill, announced recently that there has been quite a sharp drop in profit last year of around 22%. Was this decrease due to losing customers? Was it due to lack of advertising? Nope. Apparently the loss was due to some gambling taxes which have been imposed within the UK. Never mind that this affects all other casinos/betting shops in the UK and they seemed to emerge all right. But, hey. You've got to blame someone, right?

Play slots over at William Hill casino club!


A Hard Year

Loss AversionTo be fair, William Hill have been going for a long time. Years before they set up a mobile casino called Casino Club, they were and still are one of the most well-known betting shops in Britain and a staple on every high street in the country. Like sports betting? You've probably been inside a William Hill shop.

So it comes as a rude surprise that their profits last year didn't reach their expectations. As opposes to gaining more than £372.2 million (which is their gross profit from 2014), the company only raked in £291.4 million. This may still sound like a lot for most people but when you run a multi-million pound corporation any kind of loss is seen as bad. And remember, we're still talking about a different of almost £60 million.


 

Contributing Factors

HMRC Tax Logo and Pound CoinsAs mentioned, Will Hill blamed the newly imposed taxing laws on gambling for their profit drop. We can sort of see why. They ended up having to pay £87 million which likely would've made a dent in the overall scheme of things.

But it's not the only contributing factor. New national living wage laws dictate that employees should be a paid a minimum of £7.20 an hour which naturally increases the outgoings a little bit. Plus there was also a dividend increase of 2.5%.

Finally, William Hill predicted in October that its profits would be low thanks to poor sports scores across the board. This will affect the entire sportsbook industry regardless of what they did. So, although these contributing factors are out of the company's control, they should adjust and prosper more in the next financial year.


Play some slots over at William Hill casino club!

Industry News

Nothing happens in isolation, and never is that more true than with mobile casinos. What happens behind the scenes at casinos, developing houses and throughout the industry has a direct knock-on effect on the experience of players.

This is why we have a dedicated section of our site in which we look exclusively at industry news, and try and track the goings on and industry trends what matter to you – the player.

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