Betfred, a well-known betting company, is set to close 132 of its shops in September, resulting in the loss of over 600 jobs. This decision comes after the company initiated a consultation process regarding the closures, impacting more than 10% of its current betting shop locations. Following these closures, Betfred will operate approximately 1,100 sites throughout the UK.
Established in 1967 by brothers Fred and Peter Done, Betfred has amassed considerable wealth, with the duo reportedly having a combined fortune of £3.61 billion as per the latest Sunday Times Rich List. Despite acknowledging the quality of the affected shops and the dedication of the staff, Betfred’s Chief Executive, Jo Whittaker, emphasized that economic pressures and increased taxation have compelled the company to make these difficult closure decisions.
Whittaker expressed the challenges faced by Betfred, citing factors such as higher employer national insurance contributions, wage inflation, gambling tax hikes, and broader economic uncertainties as key reasons behind the closures. The company’s focus now is on supporting the impacted employees while continuing to serve customers and communities across its remaining estate.
This move by Betfred aligns with similar actions taken by rival gambling operators such as Paddy Power and William Hill, who have also closed numerous stores in the past year. The gambling industry has faced tax increases, including a rise in remote gaming duty to 40% and the introduction of a new online sports betting duty to cover all sports except horse racing starting in 2027. Betfred has also highlighted the impact of other tax hikes, including changes to National Insurance contributions and thresholds.
These closures reflect the ongoing challenges within the gambling sector, influenced by regulatory changes and fiscal policies that have prompted companies to streamline their operations in response to evolving market conditions.