Betfred is set to close 132 of its betting shops across the UK and reduce its workforce by over 600 employees starting in September. This decision, first reported by Sky News, comes as part of a consultation concerning the company’s operations, significantly influenced by a hike in the Remote Gaming Duty that took effect in April 2023.
Furthermore, an additional increase in the remote betting tax is anticipated in 2027, although this will not have a direct impact on retail betting.
CEO Jo Whittaker expressed the difficult nature of the announcement, stating, "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 impending closures are largely the result of a series of tax increases included in the UK's autumn budget of the previous year, which notably raised remote gaming duties and introduced a new online sports betting levy to commence in 2027. Despite the impending cuts, Betfred will maintain operations at around 1,100 outlets across the country following the restructuring.
This trend of closures and job losses is not unique to Betfred. Entain, which owns Ladbrokes and Coral, announced in April the closure of 39 of its 100 Ladbrokes shops in Ireland, resulting in 226 job losses. Later in July, Entain confirmed additional cuts, estimating around 500 global roles would be eliminated mainly in operational positions. A spokesperson for Entain stated, "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."
Contrarily, Entain emphasized that its closures were not a direct response to tax hikes but part of an ongoing cost optimization initiative. Similarly, while Ladbrokes announced the shuttering of a third of its stores in Ireland earlier this month, Evoke, the parent company of William Hill, confirmed that their decision to close 200 stores in April was indeed influenced by the recent tax increases. A spokesperson noted, "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."
