The first effects of the reduction in maximum stakes on fixed odds betting terminals in the UK are being felt at bookie William Hill, with a reported £820m (€920m) loss in its half-year report.
William Hill will now focus on winning back the bottom line with its heavy investment into the new US sports betting market.
The company’s results showed a total loss, including exceptional charges and adjustments of £915.9m. Now, according to analysts, the company may close around 800 of its UK high street betting shops. The reduction in FOBTs stake from £100 maximum to £2, even though it has yet to be implemented, is clearly already hitting the company’s profits.
In a statement, the company said that the impact of the new £2 maximum stake on customer behaviour would not be known for ‘some years’ yet, but it estimates it could reduce the retail division’s profits by £70m-£100m.
The pre-tax loss of £819.6m for the half-year to June compared with the £93.1m profit for the first half of 2017.
Net revenue rose three per cent to £802.6m. Its on-line business was slightly better with revenues up 11 per cent and profits by five per cent.
The company has redirected its attention to the new sports betting market in North America after the US Supreme Court in May overturned a ban on that mode of gambling. William Hill has announced deals with more than 10 casinos in West Virginia and Mississippi and is believed to be in negotiation with operators in many more US states.