British bookmaker William Hill is to close more than 100 betting shops this year, blaming the decision on a tax increase on high-stakes gambling machines that have become one of their main sources of revenue.

The UK government announced an increase in tax to 25 per cent from 20 per cent on the machines in its budget in March, a move that will cost bookmakers around £75 million a year. William Hill, Britain’s largest bookmaker, said the tax rise meant there was no prospect of turning around a group of 109 loss-making betting shops from a total estate of over 2,400. The closures would put 420 jobs at risk and result in exceptional costs of up to £24 million, it said.

“This is particularly disappointing as, through the economic downturn, we have worked hard to grow our retail base but this further planned increase in indirect taxation makes this action necessary,” chief executive Ralph Topping said in a statement.

William Hill also said operating profit had fallen by 14 per cent in the first quarter of 2014, hit by big payouts to gamblers on two weekends on which many top soccer sides had won. But the group is hoping heavy betting on the soccer World Cup in June and July will help to offset the first-quarter problems.

“While there is no guarantee we can make up the difference, we continue to believe the increased customer confidence from such wins should be good for business, especially in this World Cup year,” Mr Topping said.

More on the loss of over 100 betting shops at the Irish Times.