Britain's biggest bookmaker William Hill posted a 19% fall in first quarter operating profit today due to £20m worth of additional tax charges and the impact of its worst ever sports betting week.
The company has around 2,300 UK shops and operations online, in Australia, the US and Europe.
It said operating profit fell by £16m in the 13 weeks to March 31 as it felt the effect of new levies such as a UK tax on profits from bets made online by its British-based customers.
The industry is under increasing pressure from rising taxes as well as regulation, forcing many firms to close some shops and put greater focus and resource on growing online sales.
William Hill said group net revenue grew by just 1% in the quarter as its sports betting arm suffered its largest ever loss making week in January - £14m - after a series of customer friendly results.
Online revenue growth of 9% was wiped out by higher costs and taxes.
The group, which posted record annual profits in February, said wagering and gaming trends had improved since January.
Rival Ladbrokes yesterday posted a worse than expected fall in first quarter operating profit to £14.3m due to the unfavourable sports results and higher taxes.
Ladbrokes' performance has trailed William Hill and others and the firm is under pressure to improve its offering in the fast growing online space.
Its new chief executive Jim Mullen, promoted from head of digital last month, has promised to unveil his strategy for the business in June, earlier than planned.
Earlier this week Ladbrokes Ireland entered into examinership after an application to the High Court. Ladbrokes has 196 shops in the Republic of Ireland and it employs 840 people here.
