Flutter Entertainment has set out plans to close 57 Paddy Power betting shops across the UK and Ireland amid increasing cost pressures, with almost 250 staff facing redundancy.
Some 29 shops will shut in the UK, including one in Northern Ireland, as well as 28 in Ireland. This is expected to place 247 employees at risk of redundancy, including 128 in the UK and 119 in Ireland.
A Flutter spokesperson said some staff would be offered redeployment opportunities “where possible”. However, they warned that some people would lose their jobs as a result of the shop closures.
“In light of increasing cost pressures and challenging market conditions we can confirm that we will be closing 28 shops across Ireland,” the Flutter UKI spokesperson said.
“We are continually reviewing our high street estate, but it remains a key part of our offer to customers, and we are seeking to innovate and invest where we can as we adapt to different customer trends and needs.”
Flutter added that the shops would be closing within the next month. However, it is yet to confirm which Paddy Power branches will be impacted.
Could more shop closures be on the way?
Confirmation comes after several other major operators warned of possible shop closures in response to potential tax increases in the UK.
This week, a Sunday Times report suggested William Hill shop closures could take place if taxes rise. The sources, who were not named, said these closures could range between 120 and 200.
Evoke currently operates approximately 1,300 William Hill shops across the UK. Should the closures reach the upper end of estimations, this could see 15% of its total retail network shut.
“As part of our ongoing planning, we are assessing the potential impact of different overall tax scenarios on our UK operations,” an Evoke spokesperson said. “This includes the difficult but necessary consideration for shop closures.”
Stella David, CEO of Entain, has also said that UK retail locations could close to help save on costs. The operator counts Ladbrokes among its brands.
Trouble with tax
Much of this movement links in with mooted changes to tax in the UK. The government is expected to set out a restructured gambling tax during the upcoming budget on 26 November.
The government has not yet given a definitive answer on what the rejigged tax could look like. However, several rates have been reported and mooted as the November budget date edges closer.
The government said it was considering a single rate for remote gambling. This would replace the current three-banded tax rate system. However, this has drawn strong criticism from the gambling industry.
Any increases would be in addition to the new statutory levy, which came into effect on 6 April this year.
Flutter will close 57 shops in the UK and Ireland, with almost 250 staff to be impacted.