British bookmaker William Hill said it expected its full-year operating profit to be near the lower end of analysts' expectations after a weak third quarter.
Tighter regulation and tax pressures in Britain and continental Europe are taking chunks out of the profits of British bookmakers.
William Hill began the year as Britain's biggest bookmaker, but a series of summer mergers is pushing it down the pecking order and putting it under pressure to react.
It said its net revenue fell 9% in the 13 weeks to September 29 and operating profit slumped 39%.
The year-ago quarter benefited from strong betting on the month-long soccer World Cup tournament, the company said.
William Hill said its third quarter was hurt by £23m in additional gambling duties this year while its gross win margin was lower than expected in the quarter.
Analysts expect the company to report full-year operating profit in the range of £290.9m to £312.1m, according to company-compiled estimates.
