UK bookmakers Ladbrokes announced their first annual loss in a decade as the company fights to turn around its languishing digital operations.

In preliminary results released on Tuesday, Ladbrokes announced a pre-tax loss of £43.2m in 2015, a dramatic shift from 2014’s £37.7m profit. The numbers were dragged down by £50m in new UK taxes, thanks to the 15% online point of consumption tax and the 25% increase in the land-based Machine Games Duty.

Group revenue was up 3.2% to £1.2b but operating profit fell 36% to £80.6m thanks to those aforementioned taxes and expenses related to the company’s ongoing efforts to boost its digital offering.

Lads also suffered £99m of one-off charges due to the restructuring of its Irish retail operations and costs associated with the proposed merger with rival Gala Coral Group. The company says the merger is proceeding apace and it’s eagerly awaiting the UK competition watchdog’s initial report in April.