ITV Win is the latest casualty of the UK’s ‘unsustainable’ iGaming tax hike

(AsiaGameHub) –   The recently launched ITV Win platform is poised to be the newest casualty of the UK‘s increase in iGaming taxes.

Having launched only days before Rachel Reeves announced the near-doubling of remote gambling taxes to 40% in November, the platform notified users that ITV Win Bingo and Spins will cease operations permanently at 12pm on May 5.

The choice to close operations followed the confirmation by the brand’s operating partner, Richmond Atlantic, that it would be shutting down due to financial strain caused by the tax increases.

In addition to the remote gaming duty rising from 21% to 40%, effective April 1, a new general betting duty rate for remote betting is set to be implemented starting April 2027 at 25%.

Prior to the November launch of ITV Win, Richmond CEO Adam Joseph stated that the venture would ‘redefine the iGaming landscape’.

Nevertheless, a company representative told iGaming Expert that the business is closing, ‘primarily due to the unsustainable tax increases in the UK market’.

The spokesperson further stated: “Regrettably, following the tax hike announced in November and implemented this month, despite various mitigations we established for early trading, it is evident that the business cannot sustain itself under the new tax regime.

“We examined every avenue, including selling Richmond to another UK-facing operator, but this did not materialize. Consequently, we have decided to wind down operations.”

Mitigation strategies start to take effect

Operators of all sizes have been compelled to cut costs due to concerns regarding the financial implications of the tax revisions.

Evoke, the parent company of William Hill, intends to shut approximately 200 betting shops starting in May in response to these pressures. Simultaneously, other operators have reduced marketing expenditures and terminated major sponsorship agreements, such as Coral’s backing of the Cheltenham Festival.

While Richmond Atlantic bears the brunt of this situation, ITV Win’s platform provider, Gaming Innovation Group, and bingo supplier Pragmatic Play are also expected to lose significant revenue once the platform ceases operations.

An ITV representative informed iGaming Expert: “We are aware that Richmond Atlantic, the operator behind the ITV Win Bingo and Spins website, can no longer trade, and as a result, the business and website are being wound down.

“All customers have been notified of the closure and requested to withdraw their funds. Any customer unable to do so within the specified timeframe will be contacted manually to facilitate withdrawal, in accordance with UKGC regulations.”

Is market consolidation approaching?

Executives from firms like FDJ United and Entain have forecasted a consolidation of the UK market, anticipating that smaller operators would be squeezed out, and this announcement suggests that this trend is already underway.

Particularly striking in this instance is that ITV’s appeal was insufficient to lure another operator to acquire the brand through a deal with Richmond Atlantic, despite access to intellectual properties for some of Britain’s most popular game shows, including The Chase, Tipping Point and Who Wants to Be a Millionaire?

With the rising popularity of live game shows, this portfolio should have been an attractive opportunity. However, it is apparent that companies are reluctant to commit the financial investment necessary to acquire ITV Win in the current tax environment.