Betfred has announced plans to close 132 of its UK betting shops and reduce its workforce by more than 600 employees as of September.
The decision, first reported by Sky News on Friday, accompanied a consultation of Betfred’s stores and was marked by the Remote Gaming Duty hike in April of this year.
A further increase to the UK’s remote betting tax is expected in 2027, although this will not hit retail betting directly.
Impact of tax increases
In a direct statement seen by iGB, chief executive Jo Whittaker said: “It is with deep regret that we have today started a consultation with colleagues working in more than 130 of our shops regarding a proposal to close those locations.
“We have tried hard to protect all our sites and the colleagues who work in them, but the combined impact of higher employer National Insurance contributions, wage inflation, increases in gambling taxes and wider economic uncertainty has left us with no choice.
“These are well-run shops, staffed by dedicated colleagues, and it is incredibly hard to see any of them close, but the current fiscal and regulatory environment has made it impossible to keep trading all our shops.
“Our priority now is to support the colleagues affected, and to continue serving customers and communities across the rest of our estate.”
The closures stem largely from tax rises implemented in the UK’s autumn budget last year. These included a steep increase in the remote gaming duty and a newly introduced online sports betting levy, which is set to take effect from 2027.
Betfred, which will continue to operate around 1,100 outlets nationwide post-restructure, initiated consultations with staff impacted by the closures on Friday.
Domino effect
Entain, parent company of competitors Ladbrokes and Coral, also revealed shop closures in Ireland, back in April.
Entain chose to close 39 of its approximately 100 Ladbrokes shops in Ireland, representing over a third of its estate in the country. The closures resulted in the loss of 226 jobs.
In July the operator announced further cuts, with an estimated 500 roles to be cut globally, largely across operational roles.
In a statement to iGB at the time of the announcement, a spokesperson confirmed “these changes will help make Entain a stronger, better business and are a further demonstration of our strategic focus on maximising shareholder value. We are consulting with all those affected to support them during this process.”
Unlike Betfred however, Entain insisted the cuts were not a reaction to the tax hike, but rather part of a longer-term cost optimisation effort. Ladbroke also announced the closure of over a third of its stores in Ireland earlier this month.
Evoke, parent company to William Hill, did however confirm that the tax hike was a direct reason for their 200 store closures in April of this year.
“Following a thorough review and further to increased cost pressures on the regulated sector including significant tax increases announced by the government in last year’s autumn budget, from May we are closing a number of shops that are no longer sustainable,” a spokesperson told iGB at the time of announcement.
Kathryn Evans
Kathryn covers bitesize breaking news with a primary focus on EMEA and US legislation. A proud North Walian, fluent Welsh speaker and lifelong Wrexham FC fan – long before Hollywood came calling.
Original article: https://igamingbusiness.com/gaming/betfred-close-132-shops-increases-gambling-tax-no-choice/
