Paddy Power, part of Flutter Entertainment, has announced the closure of 57 betting shops across the UK and Ireland, a move that will put 247 jobs at risk. The closures, representing around 10% of the company’s total estate, come at a time when the gambling sector is facing increasing pressure from the government. While the closures are part of a regular review, concerns are mounting over potential tax hikes in next month’s UK Autumn Budget.
The closures, which will affect both British and Irish locations, have raised alarms within the betting industry, with leaders warning of significant financial consequences. The closures are symptomatic of a larger decline in the number of betting shops across the region, as operators grapple with rising taxes and changing consumer trends.
Impact of Government Tax Plans on Betting Industry
According to a spokesperson for Flutter Entertainment, the 57 closures are not directly linked to the potential tax increases in the upcoming budget, but the company has expressed concern about the broader economic impact of higher gambling duties. With the UK government considering tax hikes as part of an effort to ensure betting companies “pay their fair share,” the sector is bracing for a more challenging financial landscape.
Labour MPs have already voiced their support for higher taxes on the gambling sector, including a potential increase in betting duties to as much as 50%. While this proposal has garnered significant backing, industry leaders warn that such measures could push more customers towards unlicensed, illegal operators. Greg Knight, managing director of Jenningsbet, called the potential tax increases “the death knell” for high street bookmakers and racing, stressing the risks posed to both sectors by the rising financial burden.
Declining Numbers of Betting Shops Across the UK and Ireland
The number of betting shops in the UK and Ireland has already fallen sharply in recent years. Since 2017, the overall estate has shrunk by a third, from nearly 10,000 to just over 6,600 locations. As competition intensifies and consumer habits shift, many operators, including William Hill and Entain (owner of Ladbrokes and Coral), have announced similar plans to reduce their high street footprint.
The closures have broader implications for the UK’s horse racing industry, which relies on betting shop revenues from media rights and levy payments. As these businesses close their doors, concerns about funding for British racing and its ability to remain competitive have begun to surface. The combination of declining shop numbers and rising taxes presents a double challenge for the betting sector, with the long-term sustainability of traditional high street bookmakers under increasing scrutiny.
While Flutter Entertainment has promised to redeploy staff where possible, the closures will inevitably result in job losses. With uncertainty over the future of the betting landscape, the sector’s ability to navigate the challenges ahead remains in question.
