Up to 100 Paddy Power betting shops could close before the end of the year, putting around 400 jobs at risk, owner Flutter Entertainment has announced. Those 100 stores would total around one-fifth of Paddy Power's entire Ireland and UK retail estate.
Rising costs and gambling tax blamed
Flutter blamed rising energy and rates costs, as well as the government's remote gaming duty rise, for the proposed closures. The high street trading environment has been challenging for a number of years, the company said, citing rising costs, fierce competition, economic uncertainty and the shift to online.
“We are incredibly proud of our high street estate, and it remains a key part of our business in communities across the UK and Ireland. Unfortunately, we have had to take the extremely difficult decision to conduct this review,” a spokesperson for Flutter UK and Ireland said.
Impact on staff and wider industry
“The high street trading environment has been challenging for a number of years given rising costs, fierce competition, economic uncertainty and the shift to online but we also face a material impact from the higher gambling taxes announced in last year’s UK budget. Our immediate priority at this time is to support those colleagues affected by this announcement.”
Paddy Power operate a total of 506 betting stores in Ireland and the UK right now. The Irish gambling company was founded in 1988 and offers sports betting, online casino, online poker, and online bingo. Its operations are led from its headquarters in Dublin, alongside a satellite office in Malta.
Flutter, who also own Sky Bet and Betfair, say that “impacted colleagues will be offered redeployment opportunities where possible”. The announcement follows tough Q2 trading results for the New York Stock Exchange listed company, with a $37m profit swinging to a $296m loss year-on-year, the Irish Mirror reports.
Other bookmakers have also announced store closures this year. In July, Betfred announced plans to close 132 stores, while William Hill owner Evoke are set to shut 270 of its betting shops.
