Paddy Power Announces Closure of 57 Betting Shops in UK and Ireland Putting Nearly 250 Jobs at Risk
In a significant restructuring move, Paddy Power has announced the impending closure of 57 betting shops across the UK and Ireland. This decision poses a risk to nearly 250 jobs, as reported by the company’s parent organization, Flutter Entertainment.
Paddy Power Betting Shops Closure Details
The recent closures represent almost 10 percent of Paddy Power’s 608 licensed betting offices. Flutter stated that these shop closures are not directly linked to potential tax increases anticipated in next month’s UK budget. However, they warned that a rise in gambling duties could severely affect jobs and investment within the industry.
Breakdown of Closures
- 28 shops will close in Britain.
- 28 shops will close in Ireland.
- 1 shop will close in Northern Ireland.
While staff members were informed of these closures on Tuesday, a specific timeline for when the shops will shut down has not yet been detailed. Flutter emphasized its commitment to exploring staff redeployment wherever feasible. However, they acknowledged that these closures will regrettably lead to job losses.
Impact of Taxation on Betting Shops
A spokesperson for Flutter indicated the company’s frequent reviews of its high street estate, emphasizing its importance in serving customers. Despite the current closures not being directly related to the UK budget, the potential for increased gambling taxes remains a concern. Such hikes could drive more customers toward unlicensed operators, thereby impacting legitimate businesses.
Decline in Betting Shop Numbers
The footprint of Paddy Power in the UK and Ireland has significantly diminished over the past eight years. The number of betting shops has decreased from 9,977 in September 2017 to 6,668 last month.
On the New York Stock Exchange, Flutter’s stock closed at $252.20, reflecting a rebound of $2.26.
Broader Industry Concerns
Alongside Paddy Power’s closures, other operators like Entain and Evoke are also evaluating their betting shop portfolios. Reports indicate that Evoke may close up to 200 of its outlets. This trend raises alarm among stakeholders in British racing, which relies on contributions from licensed betting offices.
Industry figures have expressed fears regarding the impact of tax increases. On Wednesday, Rachel Reeves, the Chancellor of the Exchequer, mentioned the necessity for betting companies to contribute a fair share of taxes. Additionally, last month, 101 Labour MPs supported tax rises on both online and in-shop betting, potentially reaching up to 50 percent.
Greg Knight, the managing director of Jenningsbet, warned that such measures would have dire consequences for betting shops and could undermine the financial stability of horse racing.
