UK tax rise puts pressure on Gibraltar’s Gaming sector

Two major gaming companies with significant operations in Gibraltar have reported pressure on earnings as higher gambling taxes take effect in the UK.

Entain, one of Gibraltar’s largest private-sector employers, says its performance during the first half of the year was ahead of expectations.

The owner of Ladbrokes and Coral saw net gaming revenue increase by five percent on a constant-currency basis, with online revenues up seven percent.

However, underlying earnings fell two percent to £479 million, with the company highlighting the impact of higher UK online gambling taxes.

The results come weeks after Entain announced plans to cut around 500 jobs globally as part of a restructuring programme.

Meanwhile, Gibraltar-incorporated Evoke - which owns William Hill, 888 and Mr Green - reported broadly flat revenues of £887.5 million.

Its adjusted earnings fell ten percent to £150.2 million, with the company saying it faced an additional £46 million in gaming duties during the period.

Evoke has also been restructuring its business, including the closure of around 270 William Hill betting shops in the UK, which is expected to result in hundreds of job losses.

The results come after the UK’s Remote Gaming Duty increased from 21 to 40 percent in April.

Other major Gibraltar operators, including privately-owned Lottoland, which recently announced a restructure, are not included in the comparison as directly comparable half-year figures are not publicly available.

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In comments to the UK press, Entain CEO Stella David has said increased tax costs are set to cost the company around 250 million pounds, although she emphasised her commitment to continued investment in the UK.