Bookmaker William Hill said it will close 109 betting shops by the end of the year, blaming the impact of the Chancellor’s surprise hike in gaming machine duty.
The chain, which has 2,434 sites in the UK, warned that around 420 jobs are at risk from a closure plan for its worst-performing outlets.
William Hill said the hike in duty on the fixed odds machines from 20% to 25% made it unlikely that the shops, most of which are loss-making, can be successfully turned around.
It has already warned that George Osborne’s increase in the tax on betting terminals will cost it around £22 million a year.
Shares in William Hill had fallen sharply in the wake of last month’s tax raid, but rose 7% yesterday as markets reacted positively to the bookmaker’s plan.
In a trading statement, CEO Ralph Topping described the shop closures as disappointing.
It expects the closures to generate exceptional costs of up to £24m in asset write-downs and rent, rates and redundancy payments.
Meanwhile, the firm bemoaned a string of football results which contributed to a 14% profits decline in the first quarter of this year.
The second and 12th weeks in the quarter ended in “major” payouts for punters, hitting profits despite good growth in the value of wagers placed online and in retail stores.
But William Hill said it believed “increased consumer confidence” would lead to winnings being pumped back into its business especially during the upcoming football World Cup in Brazil.
Mobile betting continued to grow, it added, and accounted for 45% of online sporting wagers placed in the period.