UK bookmaker William Hill has announced plans to close 109 betting shops in the wake of the news that Machine Games Duty is set to rise from 2015.

William Hill Shop

“As a result of HM Treasury’s announcement of an increase in MGD from 20 per cent to 25 per cent from March 1, 2015, we have completed a wide-ranging review of shop profitability trends,” the company said. “While historically we have taken a measured ‘wait and see’ approach to loss-making shops, the impact of the announced increase in MGD makes it less likely that the performance of current and expected loss-making shops can realistically be turned around and, as a result, we intend to close a portfolio of 109 shops before the end of the year.”

The move, chief executive Ralph Topping said, puts around 420 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,” he said.

Operating profit at the group’s retail division fell 25 per cent in the first quarter of the year. Overall group net revenue grew five per cent in Q1 but operating profit was down 14 per cent.