The high street has been dealt yet another blow after a major chain announced the closure of 57 shops. The move will put nearly 250 jobs at risk with staff informed of the plans on Tuesday (October 14).
Paddy Power, which is owned by Flutter Entertainment, operates 608 betting shops across the UK and Ireland. The confirmed 57 closures represent around 10% of this estate with owners warning that further tax rises from Rachel Reeves in her upcoming Autumn Budget could have “a significant impact on jobs and investment”. Flutter Entertainment confirmed that 28 shops will close in Britain and a further 28 in Ireland, with an additional site shutting in Northern Ireland.
As reported by the Racing Post, a spokesman for Flutter Entertainment 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 industry has struggled over the last decade, with the overall betting shop estate in the UK and Ireland tumbling by a third in the last eight years. In September 2017, there were 9,977 shops but there were only 6,668 remaining last month.
William Hill recently revealed plans to close between 120 to 200 of their 1,300 betting shops across the UK. The closures could impact around 1,500 jobs with between five and 10 people working in each betting shop on average.
Its owners Revoke, a London Stock Exchange-listed company, are also fearing increased taxes on the gambling sector in the budget on November 26. The Chancellor reportedly wants to simplify rates of duty applied to gambling products which would raise the overall tax bill of betting companies.
Some 101 Labour MPs wrote to Ms Reeves in support of increasing betting taxes to as much as 50%. Ms Reeves said at the Labour Party conference that bookmakers needed to pay their “fair share”, while also acknowledging the contribution they make to the economy.