Betfred, one of Britain’s largest high street bookmakers, is set to permanently close 132 betting shops in a significant reduction of its retail footprint.
The closures represent just over 10% of Betfred’s total shop estate and will result in approximately 600 redundancies across the affected locations.
The company, owned by co-founder Fred Done, informed employees on Friday morning that a formal consultation period with affected workers is now under way.
The move follows similar cutbacks announced by rivals including Entain (ENT.L), the owner of Ladbrokes, and Evoke, the parent company of William Hill.
Entain cut roughly 500 jobs, or 2% of its workforce, earlier this month, while Flutter Entertainment (FLUT), owner of Paddy Power, has also been reducing its shop estate.
The Betfred closures are the most substantial since Mr Done warned last November that rising taxes could force the closure of all of his more than 1,200 UK shops.
Former chancellor Rachel Reeves increased gambling levies at the last Budget, adding further financial strain to an already pressured sector.
Jo Whittaker, Betfred chief executive, said: “It is with deep regret that we have today started a consultation with colleagues working in more than 130 of our shops regarding a proposal to close those locations.”
Whittaker added: “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 further stated: “The current fiscal and regulatory environment has made it impossible to keep trading all our shops, and our priority now is to support the colleagues affected.”
Britain’s gambling industry is growing increasingly concerned that Prime Minister Andy Burnham and Chancellor John Healey will further target the sector at future fiscal events.
Operators have also complained about recent Gambling Commission moves to introduce affordability checks on consumers, warning these changes will cause profound damage to the horseracing industry.
One industry insider warned that each Betfred shop contributes nearly £31,000 on average in direct payments through media rights and racing levies, meaning the 132 closures would amount to a total hit of £4m to racing.
Industry executives have separately told the government that betting shop closures are accelerating a shift toward unregulated offshore gambling groups, a trend ministers have been seeking to address.
Betfred was founded by Fred Done and his brother Peter in 1967, with the pair now ranking as Britain’s biggest individual taxpayers according to The Sunday Times.
Following the closures, Betfred will operate 1,094 UK shops, down from a peak of 1,680 in 2017, with a remaining workforce of roughly 6,800 employees.
