Paddy Power to Close Up to 100 Betting Shops as Tax Rises Bite
Paddy Power is set to close up to 100 betting shops across the UK and Ireland before the end of the year, putting around 400 jobs at risk as parent company Flutter Entertainment reviews its high-street estate.
The closures would represent roughly a fifth of Paddy Power's retail footprint.
Flutter says it will look to redeploy affected staff where possible, while offering support to those who lose their jobs and consulting with employees throughout the process.
The operator says its high-street business is facing a perfect storm of rising costs, fierce competition, economic uncertainty and the continued shift towards online betting.
However, Flutter also pointed to the higher gambling taxes announced in last year's UK Budget as a significant additional pressure.
For now, the focus is on supporting the staff caught up in the review, but the scale of the proposed closures highlights how tough conditions have become for high-street bookmakers.
Part of a Wider High Street Retreat
Paddy Power isn't the only major bookmaker scaling back its high-street presence this year, and it is unlikely to be the last.
Betfred closed 132 shops at the end of July, blaming higher taxes and ongoing economic uncertainty, while Evoke, the owner of William Hill, went even further by shutting 270 outlets following a strategic review linked to last year's Budget.
Paddy Power had already announced 57 closures in October.
Add the shops now under review and the operator, which currently runs 506 betting offices across the UK and Ireland, could be facing the loss of almost a third of its high-street estate within 12 months.
What This Means for Punters
For regulars at shops on the closure list, the obvious question is where to place a bet once the doors close.
Flutter has already pointed to the shift towards online betting as one of the pressures facing its retail estate, and that means customers don't necessarily need to look elsewhere.
The same markets, promotions and account features are available online, allowing punters to carry on betting from their phone or computer without having to find another shop - check out our Paddy Power review.
Why the Tax Rises Keep Coming Up
All three operators have pointed to the same source of pressure: higher gambling taxes, alongside rising energy bills, rents and business rates.
The betting and racing industries have warned of the knock-on effects, with fears that further tax rises could put even more pressure on betting shops and the wider racing industry, which relies on bookmakers for vital funding through media rights and levy contributions.
With costs continuing to mount, the big question is how much further the pressure can go before more betting shops are forced to close.
The answer could become clearer when the next Budget arrives.
