Betfred has announced plans to shut down 132 of its betting shops across the United Kingdom, putting approximately 600 jobs in jeopardy. This decision highlights the increasing financial strain on the retail betting industry in Britain, even as the company seeks new avenues for growth.
The Warrington-based bookmaker confirmed on July 31 that it has initiated consultations with employees regarding the closures, which account for just over 10% of its total locations. The closures are expected to take effect later this year.
After these reductions, Betfred will operate around 1,100 shops, a significant decrease from the approximately 1,680 locations it had at its peak in 2017. Founded by brothers Peter and Fred Done in 1967, the company currently employs about 7,500 individuals. Despite the impending closures, Betfred will still be one of the largest retail bookmakers in the UK.
The impact of these closures will extend to horse racing as well. Each betting shop contributes around £30,000 annually through levy and media rights payments, meaning that the closure of 132 shops could result in a loss of about £4 million for the sport each year.
In a statement to Sky News, Betfred's CEO Joanne Whittaker expressed regret over the decision, attributing it to the cumulative burden of rising employer National Insurance contributions, wage inflation, increased gambling taxes, and overall economic uncertainty. She emphasized that the affected branches were well-managed and that the company would focus on supporting those impacted while continuing to serve customers through its remaining locations.
The closures come in the wake of last fall’s budget, which raised costs for gambling operators through higher employer National Insurance contributions, wage increases, and online gambling duties. The government plans to nearly double the Remote Gaming Duty for online casino revenue from 21% to 40% by April 2026, and increase the online sports betting duty from 15% to 25% by April 2027.
Fred Done previously warned that such tax increases would pose a significant threat to the industry and could jeopardize Betfred's operations and thousands of jobs. The financial pressures on the Done family have also led to the relocation of their property group to Jersey earlier this year.
Betfred is not alone in facing these challenges; other major operators like William Hill and Paddy Power have also announced shop closures. William Hill is set to close around 200 branches, while Paddy Power plans to shut down 57 locations in the UK. Ladbrokes has also seen closures affecting approximately 500 jobs across Ireland.
In a strategic shift, Betfred is reportedly considering a move into Adult Gaming Centers (AGCs), commonly known as slot arcades. Sources indicate that the company may convert some of its betting shops into AGCs, although no final decisions have been made yet. Additionally, Betfred has acquired a small AGC operation with up to seven venues to help secure the necessary licenses. AGCs can provide higher-stakes gaming options and may generate more revenue than traditional betting shops.
However, the slot arcade sector faces its own challenges, including proposals to double the Machine Games Duty to 40%, which could threaten its viability. The political landscape is also uncertain, as the UK’s new Prime Minister, Andy Burnham, has previously criticized AGCs during his tenure as Mayor of Manchester.