A combination of Covid-19, a boom in online play and a crackdown on fixed-odds betting terminals could lead to closing as many as 300 Ladbrokes and Coral betting shops this year.
Considered non-essential businesses, bookies shuttered on orders of the U.K. government to stem the virus, but bettors were able to play online. Parent company, Entain, said betting online jumped 50 percent during the pandemic lockdowns.
Corporation CFO, Rob Wood, anticipated most customers would come back to betting shops after the lifting of restrictions. Despite the online success, Wood said bettors enjoyed the social aspect of betting shops.
But that would not necessarily stave off permanent shop closings.
“We look at around 100 closures per year in the U.K. off a starting point of 3,000 or so,” Wood said. “It wouldn’t surprise me if we see two or three years of closures come into one this year.”
Entain reported profits of £174.7 million (US$242.6 million) in 2020 despite lockdown restrictions on store openings. It reversed a 2019 loss of £164.4 million, according to The Sun.
Entain got a lift from iGaming and better-than-expected growth from its U.S. partner BetMGM. The results were enough to overcome a 40 percent decline in retail revenue, according to Yahoo News.
“Today’s results demonstrate the extraordinary resilience and professionalism of our people, as well as the importance of having a truly diversified business model that is not overly reliant on any one product, brand, territory, or channel,” said chief executive Jette Nygaard-Andersen, who took over Entain in January.
Entain is investing in the betting shop of the future and looks forward to welcoming customers back when shops reopen April 12 as per Prime Minister Boris Johnson’s edict.
Ladbrokes earnings grew but William Hill profits fell. Sales for both companies tumbled.
“Retail has undergone regional disruption although where stores did re-open, they quickly traded towards pre-Covid levels,” William Hill CEO Ulrik Bengtsson said. He pointed to strong online growth.
Bookies such as Ladbrokes and William Hill have previously shut stores in response to a crackdown on fixed-odds betting terminals. The amount of money bet on fixed-odds betting terminals dropped from £100 to £2 in 2019.
