(AsiaGameHub) –   ITV Win, a real-money gaming platform owned by a major UK broadcaster, is scheduled to close just months after its debut. The shutdown follows financial difficulties experienced by its operating partner, Richmond Atlantic, stemming from the UK’s new tax regulations.

ITV Win Prepares to Shut Down

ITV Win commenced operations in January, aiming to leverage the increasing consumer interest in gaming products. The brand was launched in collaboration with Gibraltar-based Richmond Atlantic and utilized technology from Malta’s Gaming Innovation Group (GiG).

However, Richmond was unable to obtain outside investment, resulting in financial challenges that were worsened by the UK’s new gaming tax. Consequently, the operational partner for ITV Win has chosen to downscale its activities. This move includes the planned layoff of approximately 40 employees.

Furthermore, Richmond verified that it will be discontinuing the ITV Win brand. The company identified Britain’s new tax system as a primary factor behind this choice. To provide background, the tax rate on UK online slots surged from 21% to 40%, creating significant disruption within the gaming sector. Despite objections from numerous operators, legislators moved forward with enforcing the new tax.

The New Tax Regime Made Business Unsustainable

In a statement to NEXT.io, a spokesperson for Richmond stated that the company’s attempts to counter the effects of the UK’s new tax rules have been inadequate, making it impossible to sustain the business under the new fiscal conditions.

The spokesperson also mentioned that every alternative was considered, such as a potential sale of Richmond to another operator targeting the UK market. Unfortunately, a sale did not materialize, compelling the company to proceed with the tough choice to cease operations.

A spokesperson for ITV verified the impending closure of the ITV Win website, confirming that all users have been notified. Current players are being advised to remove any remaining funds from their accounts. Individuals who do not withdraw their money within the specified timeframe will receive a manual follow-up contact.