UK bookmaker Betfred to close 132 shops amid tax pressure
UK-based bookmaker Betfred has reportedly opened a consultation period which may end in the closure of 132 UK betting shops, which would, in turn, result in the loss of 600 jobs.
Betfred’s shop closures, and a previous industry example
If the closures are confirmed, Betfred’s total number of remaining active betting shops in Britain will go down to around 1,100, with its workforce then amounting to around 6,800.
This development potentially makes Betfred the latest major UK betting operator to scale down its UK retail betting presence, similarly to what Evoke’s William Hill did earlier in the year when it announced it would be closing around 200 of its own betting shops in the UK.
At the time, parent company Evoke had cited tax increases imposed by the UK government and rising cost pressures on the regulated sector as its primary reason for enacting the shutdowns.
Statement from Betfred CEO Joanne Whittaker
In the case of Betfred, Chief Executive Joanne Whittaker expressed similar sentiments, as she remarked that the shops have been well-run, but continued that Betfred as a company was left with no choice other than to consider the closure of a number of shops as a result of mounting economic pressure and increased taxation.
In a statement, Whittaker said that Betfred “have tried hard” to protect all shops and colleagues, “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”.
She further remarked that “the current fiscal and regulatory environment has made it impossible to keep trading in all our shops”.
Earlier this year, an increase in the UK’s Remote Gaming Duty came into force, and the UK Gambling Commission recently announced its intention to move forward with plans to introduce financial risk assessments for online gamblers.
Reaction from the Betting and Gaming Council
In reaction to this development, the Betting and Gaming Council (BGC) stated that such possible shutdowns are “the real-world consequences of the previous Chancellor’s decision to impose excessive tax rises on Britain’s regulated betting and gaming industry”. The BGC was referring to former UK Treasury Head Rachel Reeves.
It added that such tax rises are “bad for jobs, bad for high streets, and bad for racing,” adding that they also inadvertently result in the unregulated gambling black market being handed a “massive advantage” over the regulated market.
“Betting shops are an integral part of Britain’s high streets,” the BGC commented, as it continued that such shops support local communities by generating tax revenue and “providing essential funding for British horseracing”.
It stated that further pressure on highly regulated betting businesses will ultimately result in more closures, fewer jobs, reduced investment, and less cash flow for the racing sector.
The BGC noted that it had previously warned of how further tax increases would undermine jobs, investment, and growth across the regulated betting and gaming industry in Britain and referred to the recent developments surrounding Betfred as “the latest example of those warnings becoming reality”.
Stay ahead with the stories driving global iGaming. Select SiGMA World as your source preference for exclusive voices, betting trends, prediction markets and key regulatory updates.
