William Hill to shut 700 shops placing 4,500 jobs at risk
William Hill says falling revenues following a crackdown on fixed-odds betting terminals mean a third of its stores must go.
Thursday 4 July 2019 18:23, UK
Gambling firm William Hill has confirmed plans to shut 700 betting shops, placing 4,500 jobs at risk.
The bookmaker had threatened such a move before a crackdown on controversial fixed-odds betting terminal (FOBT) stakes was implemented on 1 April.
William Hill said in a statement: "Since then the company has seen a significant fall in gaming machine revenues, in line with the guidance given when the government's decision was announced in May 2018."
It warned that a "large number of redundancies" was anticipated among the staff affected.
It said: "The group will look to apply voluntary redundancy and redeployment measures extensively and will be providing support to all colleagues throughout the process.
"Subject to the outcome of the consultation process, shop closures are likely to begin before the end of the year."
Which stores are to go will not be confirmed until the end of the consultation period.
Analysts said other betting shop operators such as Ladbrokes owner GVC - which have previously also predicted they would face having to close hundreds of shops - now looked likely to follow suit.
William Hill - and the wider industry - had repeatedly warned that many stores would not be viable when FOBT maximum stakes were cut to £2 from £100, as the government came under pressure to tackle a surge in the number of so-called problem gamblers.
The charity GamCare identified 340,000 such people in the UK last year.
Responding to the jobs announcement, Culture Secretary Jeremy Wright defended the government's move, telling Sky News it had been "the right thing to do" to protect people from what had become "a very pernicious form of gambling".
FOBT machines - described by critics as the "crack cocaine" of gambling - have been blamed for destroying lives and families while the industry has long been accused of falling short in its obligations to customers.
William Hill announced the job losses just days after it joined four other major betting companies in agreeing a package of measures to bolster funding and support for addicts.
But the company's chief executive, Philip Bowcock, later admitted to Sky's Ian King that the money raised by the sector would be less than the companies spend on advertising.
William Hill's latest financial results showed a 15% fall in gaming net revenues in the quarter to 30 April.
The planned closures represent about a third of its store estate - piling more pressure on the struggling high street which is already battling a toxic cocktail of weak consumer confidence and higher costs from things such as business rates and higher minimum wages.
Tom Blenkinsop of the Community union said: "This is devastating news for thousands of betting shop workers.
"We will be advising our members through the consultation process.
"William Hill should immediately engage with Community, so that their staff get additional support and advice during the consultation and all measures can be taken to minimise redundancies and find alternatives.
"The government also has a role to play and must look at what support they can offer to workers whose jobs are threatened as a consequence of changes to the law around FOBTs."
Industry group, the Association of British Bookmakers, had said at the time of the FOBT stake curbs that while stores would face a "significant" impact, the future of betting shops was assured.
The body said then: "We welcome more than six million customers, from every walk of life, to our shops each year, where the buzz of watching live sport, meeting friends and having a flutter are still the main attraction.
"Trained staff are also on hand to explain bets and ensure people gamble responsibly.
"Betting shops have been part of our high streets for almost six decades and with our customers support, we'll continue to ensure that Britain gambles responsibly."