THERE will be fewer than 650 betting shops left in Ireland when Ladbrokes closes 39 of its offices in the coming weeks. The news follows Paddy Power’s announcement last October that it was closing 28 shops.

Both companies attributed the decision to “challenging market conditions” which is thought to refer to increased costs and the relentless migration to online betting by consumers.

According to the Irish Bookmakers Association [IBA], since off-course betting tax was doubled to 2% in 2020, there have been hundreds of betting shop closures and job losses. IBA spokesperson Sharon Byrne told The Irish Field: “We’d be looking for a review of the taxation, and if there’s anything that can be done to support small businesses. Betting shops have a high street presence in lots of towns around the country. We support local jobs, we’re part of the local communities. It’s a shame for those people who like to have a bet in a licensed environment where the staff are trained to protect people that might be presenting with problem gambling.”

Job losses

Ladbrokes said that 226 jobs are at risk following the company’s decision to shut 39 shops in Ireland.

A spokesperson said: “These planned closures in the Republic of Ireland are not a decision we take lightly and reflect sustained cost pressures, long-term changes in customer behaviour and the growing competitive threat from the unlicensed market.

“Our priority now is to engage constructively with colleagues throughout the consultation process, with a strong focus on redeployment wherever possible.

“Ladbrokes remains committed to Ireland and to operating responsibly within a sustainable retail footprint,” the company added.

Price-fixing

Last June the competition watchdog launched High Court proceedings against Ladbrokes, a month after raids over possible price fixing.

A spokesperson for the Competition and Consumer Protection Commission (CCPC) said at the time that the case related to a “criminal investigation under our competition law powers”.

The proceedings were suspended indefinitely last February, but the CCPC is still engaged in cases against BoyleSports and Paddy Power, which are due for mention in the High Court on April 16th.

Betting shops in Ireland remained closed by law on Good Friday. Byrne said: “Unfortunately, betting shops are still operating under licences from the old regime. At the same time, customers can place bets online, on their phones, or at the track, which highlights how outdated and increasingly unfair the current rules are. Pubs have been allowed to open on Good Friday for a number of years now. (since 2018).

“With the Gambling Regulatory Authority of Ireland now in place and set to take over retail licensing later this year (November/December), we’re hopeful this can be reviewed as part of a more modern and balanced approach. We’re looking forward to working with the regulator as the new framework beds in, and hopefully seeing a change in time for next year.”

Ongoing decline

On-course bookmaker Brian Keenan disposed of his family’s betting shops over 10 years ago. However, he lamented the ongoing decline of the sector. “It’s a pity because betting shops are dying away a little bit,” he said. “There probably is a future for them when it gets to a number where they’re sustainable, I’d say some of them are probably still very lucrative. But obviously, there’s only room for so many of them, and that’s the reality.”

He added: “There has been an uptick in turnover on-course but I’m not sure there’s a direct correlation between that and the shop closures. It may be that we [on-course bookmakers] have become quite proactive with things like free racedays.

“We’re probably conscious to try and get new customers and retain old ones. The push we’ve done is bearing fruit, I think. The big festivals are getting bigger and bigger. That’s where our main slice of the pie is coming from now. But the midweek racing in the winter is probably very like the shops, just about sustainable.”

Betting shops and on-course bookmakers have previously been licensed by the Revenue Commissioners but in future this will be overseen by the Gambling Regulatory Authority of Ireland [GRAI]. Keenan said: “We’re probably not very high on their list of priorities. We’re just hoping that the licence fee will be realistic and that we don’t get treated the same as multinationals.”

Byrne added: “We absolutely welcome 100% regulation of our sector. We have been trying to bring in voluntary codes of conduct for years. All we want is a level playing field for betting shops and online betting companies.”