Since the change came into effect, William Hill has reported a “significant fall” in gaming machine revenue, and in May revealed a 7% year-on-year drop in retail revenue for the first 17 weeks of the year.
Although the bookmaker has said that this in line with guidance issued by the government when it first announced the decision in May 2018, it is taking action by reducing its UK retail presence.
Subject to the outcome of the consultation process, shop closures are set to begin before the end of the year, with around 4,500 employees at risk of redundancy.
“The group will look to apply voluntary redundancy and redeployment measures extensively and will be providing support to all colleagues throughout the process,” William Hill said in a statement. "Subject to the outcome of the consultation process, store closures should begin before the end of the year."
When the government first announced the plans to lower the stake, William Hill said that as many as 900 unprofitable shops could close as a result of the move.
Before William Hill announced its restructuring plan, rival GVC Holdings had already cut its 2019 earnings estimate by 135 million pounds and warned that restrictions imposed by the government would lead to the closure of about 1,000 stores.
William Hill currently has 2,300 stores in the UK and 12,500 employees. Shares of William Hill are down 0.03% to 163.65 pence on the London stock exchange, after having reached the highest value since April.
Source: GMB / iGaming Business
