Betfred, a prominent betting company, is set to close 132 of its shops in September, resulting in over 600 job losses. The company, founded by brothers Fred and Peter Done in 1967, is facing economic challenges and increased taxes, leading to the decision to shut down more than a tenth of its betting establishments. Despite efforts to sustain its operations, Betfred will be left with approximately 1,100 sites across the UK after the closures.
CEO of Betfred, Jo Whittaker, expressed regret over the necessity to close the shops, citing factors such as escalating employer national insurance contributions, wage inflation, gambling tax hikes, and overall economic uncertainty. Whittaker emphasized the quality of the affected shops and the dedication of their employees but stressed that the prevailing fiscal and regulatory environment left the company with no viable alternative.
The closure of Betfred stores is part of a broader trend within the gambling industry, with competitors like Paddy Power and William Hill also scaling back operations and shutting down numerous outlets. Recent tax increases, including a rise in remote gaming duty and new online sports betting levies, have further added to the financial strain on these companies. Betfred pointed out that additional tax hikes, such as increased National Insurance contributions and revised thresholds, have exacerbated the challenging business landscape.
The decision to close the shops reflects the ongoing financial pressures faced by the gambling sector, prompting companies to streamline their operations to adapt to the changing regulatory and economic conditions.
