Summary
The article demonstrates that William Hill, the UK’s biggest multi-channel betting and gaming companies, is hitting by the government's surprise hike in betting taxes. Moore (2015) reports the government introduced a 15% point of consumption tax, which is aimed to close a loophole that let companies escape taxes if they based their websites overseas. William Hill becomes one of the significantly affected companies, its first-quarter profits before tax and interest were down by 19% year-on-year.
Application of concepts
Connections to the political and regulatory environment are the impacts upon William Hill via government induced regulatory measures in the form of a consumption tax. Government usually decides to use regulations to face
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Government introduces tax which is aimed to constrain the operation of the gambling stores, and raises tax erratically according to the situation of the industry and market (Zendzian 1997). According to Moore (2015), William Hill hit by £20m of new taxes and lost its profit as a result of the government’s decision to raise 15% “point of consumption” tax. Raising duty on gambling machine will charge more than fees to play, tax hike reduces the bookmakers’ profit and drives them to close their shops (Topham and Ramesh …show more content…
Even if the closure of tangible shops, William Hill still receives revenue from the online aspect. Its first-quarter net revenues were up 1% (Moore, M. 2015). William Hill Online is a leading provider of online betting and gaming in the UK, it expanded its online betting market in Australia that has been increased at 20% per annum over the last five years, the online presence provides extra convenience to customer, reduces operating costs and support the strong growth of the business (William Hill PLC SWOT analysis