Bookmaker William Hill has warned today that further local lockdowns triggered by a fast-spreading new coronavirus wave would hit core earnings, as it posted lower third-quarter revenue.
The company is set to be acquired by US casino operator Caesars Entertainment.
It estimated that shutting 100 shops for four weeks due to further local lockdowns would reduce core earnings by around £2m.
The betting firm said that around 10% of its betting shops are located in regions where the local Covid-19 alert level is classified as "very high" according to the UK government.
The UK government has introduced fresh curbs including shutting some public places early.
While net revenue was down 9% for 13 weeks ended September 29, the drop was lower than the 32% fall it posted for the first-half, with growth in the US cushioning the decline.
Gambling firms, including rivals GVC and 888 Holdings, have been targeting overseas markets, especially the US, to offset a hit from tighter regulations in Britain.
William Hill highlighted good performance in its international online business, which was partially offset by unfavourable sports results, and signalled a return in footfall towards pre-Covid-19 levels in its betting shops.
Caesars is set to buy the company in a £2.9 billion deal to expand in the fast-growing US sports-betting market and intends to sell its non-US operations, including more than 1,400 UK betting shops.
