William Hill "revised down expectations for its full-year profits following a government crackdown" on the U.K. gambling sector, according to Naomi Rovnick of the FINANCIAL TIMES. The bookmaker said in a trading update on Tuesday that its full-year operating profit would be £225M ($295M)-£245M ($321M), against analysts’ earlier expectations of up to £260M ($341M), because of a "dent to earnings from its online operations." The U.K. government "has forced bookmakers to step up controls in areas such as money laundering and problem gambling" by carrying out extra checks on people betting online. U.K. Chancellor Philip Hammond also plans to increase from 15% to 21% the tax paid by gambling companies that "base their operations offshore but service customers in Britain." William Hill CEO Philip Bowcock said, "Adverse regulatory and tax changes will impact online profit growth in 2018 and 2019, including enhanced customer due diligence processes and an increase in remote gaming duty to 21 percent." William Hill "is now pinning its hopes" on expansion in the U.S. In the half year to Oct. 23, the group’s U.S. revenues rose 6% (FT, 11/6). In London, Julia Kollewe reported William Hill "still plans to close up to 900 betting shops" that have become unprofitable -- nearly two-fifths of the total -- following the government’s decision to "slash maximum stakes" on fixed-odds betting terminals from £100 ($131) to £2 ($2.62). As a result, it took a £915M accounting charge in the first six months of the year, pushing it into a first-half loss of £820M. Campaigners have criticized the Gambling Commission for "not doing enough to stop problem gambling." In June, the industry watchdog warned betting companies would face a "relentless escalation" in penalties if they did not "introduce extra checks on online customers" (GUARDIAN, 11/6).
