Betfred intends to shut down 132 of its betting shops in the UK and lay off over 600 employees by September. This decision, reported by Sky News on Friday, comes as a direct response to the Remote Gaming Duty increase implemented in April 2023.
While retail betting won't be affected by a further tax increase expected in 2027, the company has cited both current and future fiscal pressures as pivotal in this significant restructure.
In a statement made to iGaming Business (iGB), Betfred’s CEO Jo Whittaker expressed regret over the decision, 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."
Whittaker elaborated that Betfred has put in tremendous effort to safeguard its outlets and staff, yet was compelled to act due to a combination of higher National Insurance contributions, wage inflation, increased gambling taxes, and broader economic uncertainties. “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,” she added.
Following this restructure, Betfred will maintain around 1,100 betting shops across the UK. The layoffs began after staff consultations were initiated on Friday.
The closures are reflective of a wider trend within the industry. Entain, the parent company of Ladbrokes and Coral, announced earlier this year it would close 39 of its roughly 100 shops in Ireland, resulting in 226 job losses. The company later revealed plans to eliminate approximately 500 positions globally, especially in operational roles. They emphasized that these reductions were part of a long-term optimization strategy and not solely a reaction to tax hikes.
Conversely, Evoke, the parent company of William Hill, confirmed that their decision to close 200 shops in April was directly influenced by the tax increases from the previous autumn budget review. A representative stated at the time that the continued cost pressures on the regulated sector made some shops unsustainable following a thorough review.
