Betfred to axe 600 employees and close 132 stores.
Starting this September, Betfred will be closing 132 of its betting shops and laying off more than 600 employees. The company has cited increased taxes and economic uncertainty as the main reasons behind the decision.
The company announced that it has initiated a consultation process regarding the closures. These closure is estimated to affect over ten percent of its retail outlets. As a result, Betfred’s network in the UK will be reduced to approximately 1,100 shops.
Founded in 1967 by brothers Fred and Peter in Warrington, Betfred has grown into a prominent name in the industry. The Done brothers are currently estimated to be worth about £3.61 billion, according to the latest Sunday Times Rich List.
The decision to close stores follows recent tax hikes introduced by the previous chancellor. Fred Done described these changes as the “biggest threat” to the industry in his 57 years of experience. The autumn budget last year increased remote gaming duty from 21% to 40%, and from 2027. In addition, a new online sports betting duty of 25% will apply to all sports except horse racing.
Betfred also pointed out ongoing pressure from other tax hikes, including rise in National Insurance contributions and adjustments to threshold levels.
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What the company has explained.
Jo Whittaker, CEO of Betfred, explained, “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.”
She added, “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.”
Other gambling firms, such as Paddy Power and William Hill, have also closed numerous stores in recent months. In January, William Hill and 888 owner Evoke stated they acted “quickly and decisively” to counteract recent tax changes. This was done through store closures and cost-cutting measures. Last October, Paddy Power announced plans to shut 57 betting shops across UK and Ireland. The decision of the company was risking the jobs of 250 workers.
