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More betting shops close as Scotbet go into receivership

Scotbet: 11 of their shops have closed but it is hoped that up to 30 could be saved
Scotbet: 11 of their shops have closed but it is hoped that up to 30 could be saved

Scottish independent bookmakers Scotbet was placed in the hands of receivers on Friday with management saying the cut in FOBT stakes to £2 had contributed to the business no longer being viable.

Eleven of their betting shops have closed but it is hoped that up to 30 can be saved and with them 127 jobs.

Scotbet chairman John Heaton and general manager Bill Stratton submitted an offer for the remaining shops to the joint receivers which has been accepted.

Heaton said they had been working to turn around the business for some time but following increased competition and the shift towards online betting, implementation of the £2 stake was "the straw which broke the camel's back".

He said: "I very much regret the loss of jobs, but hopefully we will have saved up to 30 shops and those employees' jobs will be safe. The alternative was the closure of the whole group."

William Hill announced this month that they would be closing 700 betting shops due to the government's crackdown on FOBTs, which have been blamed for fuelling problem gambling.

Maximum stakes on FOBTs was cut to £2 in April
Maximum stakes on FOBTs was cut to £2 in April

The maximum stake on the machines, which had become the main source of revenue for betting shops, was cut to £2 from £100 on April 1.

GVC Holdings, the owner of Coral and Ladbrokes, have said 900 of their shops are at risk of closure, while Betfred have predicted 400 to 500 of their betting shops could be lost.

Scotbet are Scotland's largest independent bookmakers and at their peak ran 75 betting shops.

Formerly known as Morrisons Bookmaker, Scotbet was bought out by its management in 2011, the same year that the company's Andy Bennett won the Betting Shop Manager of the Year award.


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Bill BarberIndustry editor

Published on 19 July 2019inNews

Last updated 17:24, 19 July 2019

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