William Hill has revealed that it will look to mitigate the introduction of a point of consumption tax in its core UK market by achieving up to £20m in cost savings over the course of 2015.
In this morning’s full year results announcement for 2013, the operator explained that it expected the introduction of the UK tax in December this year to result in “a dislocation” of the UK iGaming market due to its impact on operating profit.
It said that the “significant” additional costs would be impossible to fully mitigate in the short term, but noted that there could be opportunity for larger operators to increase market share. This, it said, would be made possible by smaller operators being pushed out of the market as a result of the increased tax burden.
“As the market leader with robust profit margins and the scale to invest substantially in innovations in product, user experience and technology as well as in marketing, we believe we are well placed to take advantage of the opportunity offered by this market-changing event,” William Hill explained.
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