Betfred, a well-known betting company, is set to close 132 of its shops starting in September, leading to over 600 job losses. The decision comes after the company initiated a consultation process on the closures, impacting more than 10% of its betting outlets. Following this move, Betfred will be left with approximately 1,100 operational sites throughout the UK.
Established in 1967 by brothers Fred and Peter Done in Warrington, Betfred boasts a significant presence in the industry. The Dones are estimated to have a combined wealth of £3.61 billion according to the latest Sunday Times Rich List.
Betfred’s Chief Executive, Jo Whittaker, expressed regret over the closures, citing economic pressures and increased taxation as the primary reasons behind the decision. Whittaker emphasized the efforts made to sustain all sites and their dedicated staff, but the challenging fiscal and regulatory environment forced the company’s hand.
Whittaker stated, “We have tried hard to protect all our sites and the colleagues who work in them, but 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.”
The closure of Betfred shops aligns with similar actions taken by competitors like Paddy Power and William Hill in response to changing financial landscapes. Last year, William Hill and 888’s owner Evoke strategically closed stores to mitigate the impact of gambling tax alterations. Additionally, Paddy Power announced the closure of 57 betting shops across the UK and Ireland, putting 250 jobs at risk.
The industry as a whole has faced challenges due to recent tax hikes, including an increase in remote gaming duty and the introduction of a new online sports betting duty. Betfred also highlighted additional pressures from National Insurance contribution hikes and revised tax thresholds.
As the company navigates these changes, its focus remains on supporting affected employees while continuing to serve customers and communities across its remaining estate.