We have been aware of the plight of high street bookies for a long time now. People just aren’t using the high street in the way that they used to, with the internet shouldering most of the blame. Retail businesses of all kinds are suffering and bookies are no different.
Despite the drop in footfall, rents have continued to increase, and at some point, this damn was bound to burst.
Well, it looks like it might just have happened.
Closures
William Hill have announced that they will be closing 700 of their high street shops. This will bring their total number down from around 2,280 to 1,580 – a 30% reduction – which takes them from having the biggest high street presence among the ‘big 5’ bookmakers, to 4th.
Predictably, the stores that are affected are likely to be those that see the least business, which means those in more isolated areas. Not only is this unwelcome news for bettors outside of the big towns and cities, but it will have ramifications for the betting community as a whole.
Up to 4,500 jobs are now at risk, not to mention the knock on effect to local businesses that benefit from passing trade. The closures are expected to begin before the end of 2019.
Why is this Happening?
William Hill have cited the law change to FOBT’s (Fixed Odds Betting Terminals) as the reason behind the closures. These machines were hailed as the saviour of the high street bookmaker, but they have also caused plenty of controversy and were blamed for the rise in problem gambling.
The decision to limit the maximum stake from £100 to £2 has seen profits plummet quickly, and when that happens in business, something has to give.
Of course, the slow decline of the high street in general alongside the explosion of online gambling has also had an impact, but the law change to FOBT’s is seen as the tipping point.
What Now?
I don’t think William Hill have much to worry about, it’s the betting community and the staff members who are losing their jobs that will be at the sharp end of this decision.
Not only that, but other bookies are tipped to follow suit. GVC, who own both Ladbrokes and Coral, have said they could close up to 1,000 shops, and some analysts are expecting between 2,000 and 3,000 shops across the country to close in total.
However, Business Minister Jake Barry said that although it will be impactful in the short term, it could help to diversify the high street; he said “They can’t all be hot food takeaways, charity shops, and bookmakers. We want to see a diverse and vibrant High Street.”