Paddy Power has announced it will close 57 shops across the UK and Ireland, putting nearly 250 jobs at risk.
The closures make up nearly 10% of the firm’s 608 licensed betting offices and a decision was made following a review of their estate.
Paddy Power’s parent company, Flutter Entertainment which also owns the likes of Betfair and Sky Bet, said the closures are not directly related to the looming threat of tax hikes.
In next month’s autumn budget, Chancellor Rachel Reeves is widely expected to harmonise online gambling tax into a single rate – recently arguing that operators “should pay their fair share.”
As of today online gambling is taxed at 15% of gross profit for racing and pool betting but increases to 21% for casino games and slot machines.
The Chancellor’s move could see that number rise as high as 30% for both codes and the British Horseracing Authority is fearing losses of up to £160 million on its sport alone.
Evoke, the operator behind William Hill, is also preparing to close up to 200 shops later this year and Entain, owner of Ladbrokes and Coral, shared a similar message.
Flutter has estimated that 247 jobs are at risk and staff were informed of the plans earlier this week. The company will seek to redeploy where possible but conceded the closures would lead to a number of job losses.
A spokesman for the group said: “We are continually reviewing our high street estate, but it remains a key part of our offer to customers, and we are seeking to innovate and invest where we can as we adapt to different customer trends and needs.
“While today’s closures are not directly related to the uncertainty surrounding the budget, a higher gambling tax could have a significant impact on jobs and investment across the industry and drive more customers into the arms of unlicensed operators on the illegal black market.”
A YouGov survey commissioned in July revealed that 28% of gamblers in the United Kingdom could head for the black market due to the proposals.
In the last eight years, the overall betting shop estate in the UK and Ireland has dropped by a third from 9,977 in September 2017 to 6,668 recorded last month.
Joe Lyons is a betting industry writer for GamblingIndustryNews with years of experience on reputable gambling websites. Joe specialises in long form content in the world of sports betting and gambling. Joe is recognised as an expert in sports fields such as horse racing, soccer, NFL and NBA.
