Betting giant Betfred has issued a stark warning that nearly 1,300 of its betting shops could face closure across the United Kingdom, putting thousands of jobs at risk. The alarming prediction comes as the government's crackdown on fixed-odds betting terminals (FOBTs) begins to bite.
The £2 Stake Revolution
The dramatic reduction in maximum FOBT stakes from £100 to just £2, implemented in April 2019, has created what industry experts are calling a "perfect storm" for high street bookmakers. These machines, often described as the "crack cocaine of gambling," previously generated the majority of revenue for many betting shops.
Betfred's owner, Fred Done, didn't mince words when describing the impact: "The reduction in FOBT stakes to £2 has been a body blow to the high street betting industry. We're facing the toughest trading conditions I've ever seen in over fifty years of business."
Employment Crisis Looming
The potential shop closures could have devastating consequences for employment across the retail sector. With approximately 4,500 shops currently operating under the Betfred banner, the threatened closures represent nearly a third of their entire estate.
Each betting shop typically employs between four and six staff members, meaning thousands of workers face uncertainty about their future. The timing couldn't be worse, with the UK retail sector already struggling amid economic pressures and changing consumer habits.
Industry-Wide Impact
Betfred isn't alone in facing these challenges. Major competitors including William Hill and Ladbrokes Coral have also signalled significant restructuring plans. The entire sector is grappling with how to adapt to the new regulatory environment while maintaining viable high street presence.
Many industry analysts predict that the FOBT stake reduction will cost bookmakers hundreds of millions in annual revenue, making current shop portfolios unsustainable without radical transformation.
The Government's Stance
The Department for Digital, Culture, Media and Sport defended the stake reduction, emphasising their commitment to protecting vulnerable gamblers. A spokesperson stated: "We've always been clear that we need a responsible gambling sector that protects players while ensuring those who enjoy betting can continue to do so safely."
However, critics argue that the government failed to adequately consider the employment consequences of their decision, particularly in communities where betting shops provide stable local jobs.
What's Next for High Street Betting?
The industry faces a critical period of adaptation as bookmakers explore new business models. Many are increasing their focus on:
- Digital and mobile betting platforms
- Enhanced sports betting offerings
- Diversification into other entertainment services
- Reduced operating costs through technology
As Fred Done summarised: "We must evolve or face extinction. The high street betting shop of tomorrow will look very different from what customers are used to today."
