More than 3,000 betting shops are at risk of closing under new regulations that cut the maximum stake on fixed-odds betting terminals from £100 to £2.
Under current rules, gamblers can bet up to £100 per spin every 20 seconds on the machines, which means betting shops can earn as much as £300 a minute.
New regulations were brought in to reduce harm to those the government considers “most vulnerable” to gambling.
In March, Matthew Hopkinson, director at DataIntel, estimated that one-third of the UK’s 9,000 betting shops could close as a result of the new rules.
EG’s head retail analyst James Child said: “The government’s roll of the dice on this one could have a butterfly effect on some of the UK’s most deprived towns and high streets.
“Bookmakers have been at odds with government for a while on how to balance the ethical nature of gambling against the economic life that they often breathe into communities.
“Remember; it was the proliferation of betting shops up and down the country that filled the high streets empty shops in the UK during the last recession. Fiscally for consumers they were darker times and the win-or-bust nature of gambling saw them pop up everywhere.
“There is a fear that a reduction in the maximum bet on FOBT’s from £100 to £2 could see around one-third to physical bookmakers close, costing thousands of jobs countrywide. A reduction of revenues will lead to staff reductions and ultimately closures.”
Barclaycard data published last week suggested that the amount of spend in physical betting shops was down 31% year-on-year, whilst the amount spend online rose 37%. This trend is likely to continue and can offer opportunity for other retail sectors.
According to Radius Data Exchange the average betting shops is around 1,000 SQ FT with around one-third of those located in the more deprived parts of the country. Places where high streets and towns are most in need of regeneration and collaboration for revival.
With instability on the high street at the present time is, who will be in a position to take that space?
Child added: “Independent operators can take off from where national chains have failed by filling this space on the high street. A more concerted effort from planners and councils needed this time round to stop short term retail lettings but create uniform approaches with how to best address the failures of the past.”
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