UK’s William Hill Plc said it is cutting its revenue forecast down between 35-45% as a result of a regulatory action that reduced its minimum betting stake.
William Hill is a betting giant that provides horse racing and other gaming products.
The revenue forecast cut is necessary as the UK Department for Digital, Culture, Media and Sport DCMS is said to be reducing the maximum stake on B2 games from £100 to £2.
The company said in a statement that: “Given the Government has specified its intended outcome, William Hill is providing preliminary guidance on the potential impact in order to help investors and analysts with their own modelling.
“However, a regulatory change of this nature is unprecedented and its impact on customer behaviour will not be fully known until some years after implementation. The initial guidance provided, therefore, is necessarily based upon a series of assumptions based on William Hill’s knowledge at the time of writing,” the company said.
Philip Bowcock, Chief Executive Officer, said:
“William Hill has a long and proud heritage as part of the UK high street and we know how important betting shops are to our customers and their local economies. The Government has handed us a tough challenge today and it will take some time for the full impact to be understood, for our business, the wider high street and key partners like horseracing. We will continue to evolve our Retail business in order to adapt to this change and we will support our colleagues as best we can.
He added that “Despite the challenges presented by this decision, our teams will compete hard and offer great service to William Hill customers.”