Paddy Power Plans To Close 57 Betting Shops

The high street betting business is facing another significant shake-up as Paddy Power, has announced plans to close 57 of its betting shops. The decision, which affects nearly 250 jobs, has raised concerns about the future of retail betting in the UK and Ireland.

On October 14, Paddy Power’s parent company, Flutter Entertainment, confirmed the closure of 57 shops, which constitutes approximately 10% of its total estate of 608 betting outlets across the UK and Ireland.

Job Losses and Economic Impact

The impending closures will put around 250 jobs at risk, a significant concern for the affected employees and their families. The announcement comes at a time when the high street is already grappling with numerous challenges, including changing consumer habits and increased competition from online betting platforms.

Flutter Entertainment has stated that while the closures are not directly linked to the upcoming Autumn Budget, the potential for increased gambling taxes could further strain the industry. The company has expressed concerns that higher taxes may lead to job losses and reduced investment in the sector, ultimately pushing customers towards unregulated operators.

Betting Shop Closures

The announcement from Paddy Power is not an isolated incident. The betting industry has seen a dramatic decline in the number of retail outlets over the past decade. According to recent statistics, the total number of betting shops in the UK and Ireland has decreased by a third since 2017, falling from nearly 10,000 to just over 6,600.

Several factors contribute to this decline:

- Increased Online Competition: The rise of online betting platforms has significantly altered consumer behaviour, with many punters opting for the convenience of betting from home.
- Regulatory Changes: Stricter regulations and potential tax hikes have created an uncertain environment for betting operators, leading to a reassessment of their retail strategies.
- Changing Consumer Preferences: Younger generations are increasingly favouring digital experiences over traditional retail, prompting many companies to adapt their business models accordingly.

Flutter Entertainment’s Strategy Moving Forward

Despite the closures, Flutter Entertainment remains committed to its high street presence. A spokesperson for the company stated that they are continually reviewing their retail estate to ensure it meets the evolving needs of customers. The company aims to innovate and invest in areas that align with changing consumer trends.

Flutter has indicated that it will explore new ways to engage customers, potentially through enhanced in-store experiences or technology integration. This approach aims to attract foot traffic and retain customers who may otherwise turn to online alternatives.

The upcoming Autumn Budget, set to be announced by Chancellor Rachel Reeves, is expected to address the taxation of gambling operators, the fear is that a large tax hike would affect gambling operators to close more betting shops as a consequence.

There is growing pressure from various political factions to increase taxes on betting companies, with some Labour MPs advocating for rates as high as 50%. While the government argues that gambling companies should contribute their “fair share” to the economy, industry leaders warn that excessive taxation could have detrimental effects on jobs and investment especially on betting shops.

Football Association of Ireland scrap SportPesa sponsorship deal

Sports betting operator SportPesa has lost its sponsorship agreement with the Football Association of Ireland (FAI) after the sports body came under heavy criticism from anti-gambling campaigners.

This weekend, the FAI announced that it had called time on its two-year SportPesa sponsorship deal, despite the deal being less than one year old. The FAI said it made its decision after “re-evaluating its partnership portfolio” and “shifting priorities.” The FAI thanked SportPesa for its “professionalism over the course of this deal.”

SportPesa issued its own statement saying that the decision to “mutually terminate” the contract ahead of schedule was the result of “discussions between the two parties.” SportPesa added that “as an organization that takes responsible gambling incredibly seriously, we understand the new approach taken by the FAI toward its partnerships with those in the gaming sector.”

The FAI’s SportPesa deal was subject to intense criticism from anti-gambling campaigners who felt the body was improperly promoting betting. The decision to forego SportPesa’s sponsorship cash came despite the body being so cash-poor that it was forced to accept a €20m financial assistance package from the Irish government last week.

The FAI’s rejection of betting cash comes nearly two years after the Gaelic Athletic Association voted to ban “sponsorship by a betting company of any company of any competition, team, playing gear or facility.”

The FAI deal was part of a major football sponsorship drive the Kenya-based SportPesa undertook as it looked to boost its presence in Ireland, the UK and other European markets. SportPesa was also a major football sponsor in its home market Kenya but withdrew its support last August due to its ongoing tax fight with the local government.

The gaming industry’s relationship with sports is under fire in numerous markets, including the UK, due in part to some operator’s social responsibility missteps and an increasingly unhinged media approach that views any action by gambling operators as an existential threat to society.

National Lottery Expansion Triggers Scare of Problem Gambling

With multiple private National Lottery operators opening an average of 50 new establishments every single month for the last couple of years, experts are viewing the situation as a precursor for a surge in problem gambling in Ireland. Ever since a Canada-regulated consortium was provided the franchisee of National Lottery back in 2014, there has been a reported increase of nearly 50% in the number of authorized retailers selling scratch cards and draw tickets for Lotto. The reported rise in the number of retailers shows a jump to 5790 in the current situation from 3,700 in 2014.

The PLI or Premier Lotteries Ireland is currently owned and operated by a pension fund based out of Toronto, with the erstwhile state operator An Post holding a minority stake in it. According to a report published by a local media house, the company is mulling over a proposition of adding a new set of over 320 retailers to its existing comprehensive network of National Lottery within the next two years.

However, the chief executive officer at a charitable organization called Problem Gambling Ireland, and an addiction counselor, Barry Grant, has expressed his views on the proposed expansion majorly targeting the rural areas by saying that it could actually have a negative effect on the population of the country.

Barry said that while lottery ticket draws fall on the far end of the risk factor scale of gambling, the scratch cards bring with them an instant gratification factor which makes them quite similar to the hardcore casino gaming on slot machines. He further added that the scratch cards are far more addictive and harmful as compared to traditional lottery draws with a majority of the purchases for the former falling under the category of impulse buying. And making scratch cards available throughout the country would only promote the habit of impulse buying.

As such, scratch cards could end up becoming a major factor that can make the issue of problem gambling more prevalent across the country. Recalling his experience with his counseling clients in the past, Grant remarked that he has met a huge number of people who were struggling with the problem of spending hundreds of dollars every week only on scratch cards! With more and more people buying scratch cards with money they cannot afford, personal debts are also on an all-time rise.

Chinese fixing syndicate and a real new threat to football as UEFA send report to Athlone Town

Fears are growing that Chinese criminals have taken match-fixing to new levels by buying stakes in European clubs and then organizing corruption of these teams’ fixtures.

A stake in Athlone Town, a club under investigation over an allegedly fixed match in the League of Ireland last weekend, is believed to have been sold to a party ultimately funded by a Beijing-based fixing syndicate.

The same group, control by an individual whose name is known to this newspaper, is understood to have taken interests in lower-league clubs in Portugal, Latvia and Romania where fixing has also been suspected.

Athlone are under investigation by the Irish police, the Irish FA and European football’s governing body UEFA over their 3-1 defeat to Longford Town last weekend.

A confidential UEFA report sent to Athlone on Friday says: ‘There is clear and overwhelming betting evidence that the course or result of this match was unduly influenced with a view to gaining corrupt betting profits.’

Sources say gamblers with inside knowledge profited by around £500,000 from bets placed in the unregulated Asian markets on at least two goals being scored in the first half (Longford were winning 2-0 at half-time), and on four of more goals being scored in the game. Longford went 3-1 ahead in the 87th minute.

Sources say the stake in the Irish club bought by the Chinese firm was lower in value (around £425,000) than estimated betting profits from that one game alone. Athlone have received recent investment but officials have declined to say how much or where from. It is not known if the cash was paid directly from China or via intermediary organisations.

Athlone did not respond to calls or emails seeking comment from the MoS but a club statement said they were ‘absolutely shocked’ by fixing allegations.


Chinese firms have bought interests around 20 clubs across Europe in recent years, almost all of them with no hint of controversy, let alone scandal. But governing bodies will now be on red alert over deals, not least for relatively large sums in the lower leagues. ‘If an investment offer for a “lesser” team seems too good to be true, it probably is,’ says one investigator.

Two other Athlone matches this season caused alarm among market watchers, although it is not known if UEFA are aware of this. One was against UC Dublin on 8 April, which Athlone lost 4-1. Sources from both the ‘integrity’ side of the football industry and in the betting underworld say huge sums were won in that match by bets place on at least five goals being scored in the fixture. UC Dublin’s fourth goal - the fifth in the game - was scored in the 89th minute.

The Irish police will begin an official investigation on Monday.

Athlone have seen a spate of comings and goings among the playing and coaching staff since the mystery investment in the club.

Among the recent arrivals was Latvian goalkeeper Igor Labuts, who has played for at least two other teams where money is believed to have been injected by the Beijing firm - and have been investigated for fixing. He has admitted to being approached in the past by fixers and thwarted their advances, and says he has been shocked by fixing allegations against his clubs.

‘I know that I am clean but it’s unpleasant and my reputation has been damaged,’ he said.

A UEFA spokesman said: ‘UEFA is completely committed to eradicating match-fixing, a disease that attacks football’s very core.’

Sources say UEFA have investigated around 200 matches per season over the last three years in leagues across the 55 nations in their region over suspicious betting patterns and fixing concerns.

Over the past seven years, UEFA has been involved in the successful prosecution of 14 match-fixing cases across the Continent where the guilty parties were banned for between a year and life.

While the ratio of allegations to prosecutions is hugely disproportionate, it is notoriously difficult to prove fixing beyond any doubt. Typically a successful case will involve tracing a money trail on bets and then linking that unequivocally to corrupt players or officials.

William Hill is left chasing the field as tie-ups reshape sector

William Hill began the year as Britain's biggest bookmaker but a series of mergers is pushing it down the pecking order and putting it under pressure to react.

Driven by tighter regulation and tax pressures that are taking chunks out of profits, big betting names Ladbrokes and Gala Coral are combining, as are Betfair and Ireland's Paddy Power.

Online gambling firm GVC also agreed a £1.1bn (€1.5bn) deal for larger rival Bwin.Party this month - with the same factors fuelling consolidation.

The larger companies can divert savings into higher marketing spend and potentially offer a wider array of improved products to gamblers on smart phones and tablets. Smaller rivals are then squeezed out and these new groups' lower costs, enhanced market share and larger revenues all help to soften bigger tax charges.

High street shops where gamblers can bet on horse or greyhound racing have been a feature of British and Irish towns since the 1960s. Betting "in play" on televised football matches has also attracted a younger generation of tech-savy sports fans as the gambling scene has moved online.

William Hill grasped these trends before rivals but now appears to have ground to make up.

"William Hill could benefit from a potential partnering up with another operator, now it has more credible competition coming. But it's hard to see exactly who," HSBC analysts said.

Led by CEO James Henderson, a 30-year company insider who replaced veteran Ralph Topping last year, it was William Hill who made one of the first moves of 2015, tabling a £720m bid for online gambling firm 888.

That deal collapsed but the M&A wave since has narrowed the field, including the removal of Betfair, which analysts had tipped as a fit.

For William Hill, 888 remains the obvious choice. The firm has a market capitalisation five times smaller than William Hill's and would add leading technology, strong casino and bingo positions and a lot of cost synergies to its arsenal, analysts say.

The only other big player is Bet365, it is likely too expensive and has an exposure to unregulated markets William Hill wants to avoid.

ATR agrees new media rights deal with Irish racing bodies

UK and Irish horse racing broadcaster At the Races (ATR) has agreed a deal with Horse Racing Ireland (HRI) and the Association of Irish Racecourses (AIR) to gain exclusive cross-platform media rights to all Irish fixtures.

The two-year agreement, which begins in January 2014, is described as including “significantly improved terms” for multiple media rights with ATR expecting returns to racecourses to more than double next year. Revenue is also expected to be positively impacted by the option to offer domestic and international distribution through online and new media.

ATR’s partner, broadcaster and data supplier SIS will retain all domestic and international betting shop rights under its existing contract with HRI.

As part of the agreement ATR will offer HRI and AIR a seat on its board of directors, described as “a significant and important new development that will help further the effort to coordinate and align strategies and keep the Irish racing industry integrally involved in the management and direction of its rights exploitation.”

The company’s chief executive Matthew Imi said he was “delighted” that the relationship with the two associations would continue, describing Irish racing as “a significant part of [ATR’s] business.”

“HRI and AIR made it very clear that not only did they feel ATR had done a great job monetising their rights across our current distribution platforms but that they were also excited about the long term potential of the business and we look forward to welcoming their representative onto the ATR Board as we start to roll out our growth strategy,” he explained.

AIR CEO Paddy Walsh added that he was “very pleased” to have agreed the new deal with ATR and SIS, saying that he looked forward to “all parties benefiting from the partnership approach that we have always adopted in the past.”

Irish government to allow casinos

The Irish government will introduce new legislation to block super casinos but will allow small casinos to open in the republic.

Micheal Lowry an independent legislator had hoped the government would consider opening up to larger style gaming developments to increase tourism and jobs, but the government have decided against that move.

Under the new legislation new casinos will have a limit to the amount of tables they can install, locations for casinos will be strictly controlled and also all casinos will have to contribute to a socially responsible gambling fund to help and protect addictive gamblers.

Ireland announces remote betting bill

Ireland’s Minister for Finance Michael Noonan announced a new bill that will create a new licensing system for remote betting operators.

The Betting (Amendment) Bill 2012 is designed to “ensure a fair and equal treatment of all bookmakers and betting exchanges offering services in Ireland.” The bill will bring into the licensing and taxation regime all remote bookmakers and betting intermediaries, such as betting exchanges.

The new licensing system for remote operators is intended to prevent crime and protect consumers against fraud. It has also been drafted to ensure that all businesses offering betting services from Ireland or to persons in Ireland are regulated appropriately. The bill amends, for that purpose, the Betting Act of 1931, which contains the existing provisions governing licensing of bookmakers and will be scheduled in the next Dáil session.

Provision was made in the Finance Act 2011 for the taxation of remote bookmakers and betting exchanges, subject to a ministerial commencement order.

“This bill will bring into place a fair and equitable licensing and regulatory regime for all bookmakers and betting intermediaries,” Minister Noonan said. “This bill, once enacted, will allow for the extension of betting duty to remote bookmakers and will ensure that all bookmakers' activities offered in the state are taxed equally.

“The fact that off-shore bookmakers were not subject to the betting levy represented a competitive disadvantage to on-shore firms and also narrowed the state’s yield from the levy.”

There is “significant downstream revenue potential” from investment from major companies, he said, noting that such organisations prefer to base themselves in “properly licensed and regulated regimes.”

Irish Government announcing tougher rules for online

The Irish Goverment are to introduce time delays on the use of credit cards for online betting, under plans being drafted by Justice Minister Alan Shatter to protect the vulnerable and young.

Advertisements that promote betting as a fashionable or trendy pastime will also be banned under strict measures being drawn up to overhaul the current gambling laws.

Online gambling operators will be required to operate “due diligence checks” on customers. This could include enforcing a 12-hour delay between when players register and when they are allowed actually to play.

This would, the Irish goverment believe help deter under-18s from attempting to use their parents’ credit cards and players could be required to provide online confirmation of their identity or age or register for PIN numbers.

The new laws, not expected to be implemented until next year, will for the first time govern online gambling and betting providers through licensing and tax measures.

Mr Shatter last week said “shortcomings” in current laws dating back to 1931 were exposing young people and other vulnerable persons to “unacceptable risks”.

Restrictions being considered include a time delay between when players present online with credit card details and when they can actually start gambling.

It remains to be seen exactly how Department of Justice officials intend to police online betting and gambling operators, particularly those based outside Ireland.

Bookies Paddy Power point out that only two of the top 10 online bookmakers are based here and it would be unfair if competitors based outside the state could escape restrictions.

Restrictions on advertising for gambling or betting are also being ironed out.

A system of fines and possible prison terms are also being considered for offending gambling providers.

Paddy’s invests in Ireland despite downturn

Paddy Power has announced it will create 375 new online jobs in the stricken Irish economy as the bookmaker continued its momentum from the first half of 2010, with stakes from its core sportsbook growing 34% year-on-year from 1 July to 15 November 2010.

Amounts staked on gaming and by B2B channels, via the operator’s deal with former French horse racing monopoly Pari-Mutuel Urbain (PMU) to provide fixed-odds risk management and pricing tools, were up 33% year-on-year during the period.

The jobs expansion in its international online business headquartered in Tallaght, West Dublin, will increase Paddy Power’s Irish employee base to 2,210. It will also add 130 online jobs in Australia, where it owns Sportsbet and IAS, as part of a total of 1,440 jobs to be created across its online, retail and telephone businesses by December 2013.

Ireland’s minister for Enterprise Trade and Innovation, Batt O’Keeffe TD said: “Paddy Power’s rapid international expansion has direct revenue benefits for the Irish Exchequer and, as overseas markets deregulate, growth prospects are strong for the firm’s online business.”

Jack Massey, finance director at Paddy Power said that Irish economic conditions had become “more challenging” during the period but that its international business in the UK and particularly in Australia had “offset” its figures in Ireland. Amounts staked in Australia rose 6% year-on-year from 1 July to 15 November, with online stakes growing 22%, with gross win from online up by 70%. Net revenues in the last three months in the UK were up 17%, but up only 9% in the Irish Republic due to an 8% drop in gambling.

“The economic conditions in Ireland reflect the reality of the situation. In January the government set its stall out saying it would take €7.5bn out of the budget deficit, this then grew to €15bn in the summer and now people are speculating whether or not the government has the capacity to make that change. Fortunately we have a strong international business that can offset these difficulties.”

Massey said that Paddy Power’s online gross win in Australia was approximately AUS$50m for the second half of last year, and that if growth patterns continued at their current pace gross win would increase to around AUS$75m.

Summing up 2010 Massey called 2010 a “very significant year” for Paddy Power. “We have benefited from a number of good sports results, while there has been a strong momentum in our international activities. This now accounts for two-thirds of our operating profit. Five years ago it was 20%. We have steadily shifted a lot of emphasis towards online and this will continue,” he said.

“We have entered France on a B2B basis with PMU and are looking at other regulating markets, but have yet to make an official statement on where could go next. We have the option to do this either by acquisition, organic growth or via a B2B partnership.”

Asked which markets had the most potential, Massey said the US in “scale terms”, while “closer to home Greece and Denmark are also regulating and are “attractive”.

“At the moment we are driving growth in the businesses we have, but we are always looking n to grow in scale, technology and in mobile, for example, where we have been emphasising our credentials recently,” Massey added.

He called yesterday’s decision by Australia’s Federal Court to overturn its original decision over Racing New South Wales's right to impose a fee of 1.5% of turnover under racefields legislation introduced in September 2008 “disappointing”. The Federal Court on Tuesday ordered Paddy Power-owned Sportsbet to pay, according to Massey, “a seven figure sum” in costs after overturning the decision that the fee was protectionist towards the TAB.

Irish Labour Party pushes online gambling tax reform

Just days after the UK announced stricter regulation for offshore sports betting firms that cater to local punters, now Ireland is following suite – but this time, the issue is tax. Current levies in betting shops across Ireland sit at a standard 1%, a rate which also applies to internet bookies. Under the new reform, the tax on all sports betting operations, including online sportsbooks in Ireland, is to be raised to 1.5%.

This seemingly small increase is expected to generate revenues of around €90m for the Horse and Greyhound Racing Fund. This Fund has seen a 13% reduction in government funding since October 2008, and more cuts have been promised for 2010. This recent chain of budget cuts has already started to drive betting shops out of business across the country, with more than 100 closing in the last 12 months.

Taxing foreign-based internet bookmakers, it seems, is a way to get some money back into the Fund, without the Irish government having to dip into their own pockets (the government funds half of the greyhound industry in Ireland already).

The Irish Bookmakers Association, on the other hand, believes that the 1.5% levy will only have a negative effect on local betting shops, and could lead to further closures and job losses.

Regardless, Labour is serious about the changes. Spokesperson Mary Upton states, “Online operators who are not based in Ireland but who are providing a service to Irish customers and who refuse to register and pay the betting levy will be blocked by Irish internet service providers, upon the direction of the Government.”

Upton was quick to point out that the new levy does not affect online casinos in Ireland. Foreign companies offering online gambling services in Ireland will pay the levy on sports bets only, not on other forms of internet gambling.