Paddy Power to close 57 betting shops across the UK and Ireland with almost 250 jobs at risk

Britain and Ireland's betting estate is set to shrink further after Paddy Power announced they will close 57 shops, a move that will put nearly 250 jobs at risk.

The closures represent nearly ten per cent of Paddy Power's 608 licensed betting offices (LBOs) and come following a review of their estate. Flutter Entertainment, the parent company of Paddy Power, said the closures are not directly related to potential tax rises in next month's UK budget, but warned any increase in gambling duties could have "a significant impact on jobs and investment".

Flutter said 28 shops in Britain and the same number in Ireland would close, with an additional outlet going in Northern Ireland, although a timeframe for the shuttering of the buildings was not immediately outlined.

The company estimated that 247 jobs were at risk with staff informed on Tuesday of the plans. Flutter said it would seek to redeploy staff where possible, but added that "the closures will unfortunately lead to a number of job losses". 

Paddy Power: almost 250 jobs are at risk due to the betting shop closuresCredit: Alan Crowhurst

A Flutter spokesman 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.”

The overall betting shop estate in the UK and Ireland has dropped by a third in the last eight years from 9,977 in September 2017 to 6,668 last month. 

At 6pm BST Flutter's share price, as listed on the New York Stock Exchange, was up $2.26 to $252.20.

The potential for betting shop closures in Britain has been raised in recent days by Entain, the parent company of Ladbrokes and Coral, while Evoke, the owner of William Hill, was reported at the weekend to be considering the closure of up to 200 of its betting shops.

The possibility of Entain and Evoke reviewing their betting shop numbers, alongside Flutter's planned closures, could put further pressure on British racing's finances with LBOs contributing to the sport's income through media rights and levy payments. 

Duties paid by bookmakers are expected to increase in next month's budget, with chancellor of the exchequer Rachel Reeves stating at the Labour Party conference that betting companies needed to pay their "fair share" on tax. Reeves said on Wednesday at an event in the US that she was "looking at further measures on tax".

Last month 101 Labour MPs wrote to Reeves in support of increases in online and in-shop betting taxes to as much as 50 per cent. Greg Knight, managing director of leading independent bookmaking chain Jenningsbet, said such a move would spell disaster for betting shops and be "the death knell for racing as well as high street bookmakers".

Read more here

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