Stable businesses come into their own during times of instability. Whatever causes market instability, well-equipped businesses find ways to adapt. This is particularly pertinent at the moment, given recent changes to UK tax policies.
The most recent example of Chancellor Rachel Reeves’ budgeting taking hold is the change to Remote Gaming Duty (RGD). The levy imposed on gambling operators in the UK jumped from 21% to 40% on April 1, 2026. According to the government, the increase is designed to reflect the growth of online casino gaming.
Reeves’ assessment is, indeed, correct. Gambling operators diversified their portfolios over two decades ago to align with changing tastes. For example, Paddy Power was formed in 1988 through the merging of three Irish bookmakers.
From a network of betting shops in Ireland, Paddy Power now has a global network of online and offline assets. The casino at Paddy Power alone gives players access to upwards of 2,000 games, including exclusives such as Paddy’s Mansion Heist. This asset sits alongside a sportsbook, poker site and bingo room, as well as live betting shops.
Nothing Changes by Staying the Same
Diversification was the strategy back then, and it will be once again as gambling operators respond to RGD increasing to 40%. Gambling operators aren’t the only ones facing tax hikes. The beleaguered hospitality sector is now contending with increased business rates and a rise in the minimum wage.
Talking to The Guardian, Nick Evans, co-owner of the Old Crown Coaching Inn in Faringdon, Oxfordshire, said he can’t increase prices any further. The former city trader is almost ready to admit defeat when it comes to the food and beverage side of his business.
“The only way you can make it work is to have a microwave and staff who can open a packet and put it on a plate. That’s not the reason we entered this industry”, Evans told The Guardian.
To keep his business afloat, Evans is doing what many old pubs are doing: he’s adding more hotel rooms. Adding six more rooms to the 14 already in place would “allow us to grow”, Evans explained. In this case, diversification is a necessity rather than a luxury. What’s important to take from this as a business owner is that standing firm isn’t necessarily the answer.
Cost-Cutting Isn’t Always the Answer
A recent report by the British Chambers of Commerce shows that 55% of UK businesses are increasing their prices as a result of tax hikes. A further 26% have cut their investment plans. Alongside those moves, finding new streams of income is crucial. Gambling and hospitality aren’t the only industries currently facing economic changes.
The long-term effects of US President Donald Trump’s war on Iran are already affecting haulage companies and farmers due to higher oil prices. These costs will filter through dozens of industries, meaning very few will escape.
Cost-cutting is a valid strategy, but so is diversification. Finding ways to add new services through online channels might be the way. Diversification could look at a new range of products. Whatever the pivot, it needs to address the central issue of raising costs by either increasing revenue or offering something at a lower price. The best businesses manage this, which is why they remain stable during unstable times.
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The Time to Diversify is Now: Stable Business Adapt During Times of Instability
