Gaming / Gambling Business

1. Ladbrokes to close 50
high street outlets this
year
By Andrea Felsted, Senior Retail Correspondent
©Bloomberg
Ladbrokes is poised to close up to 50 shops this year as a backlash against the
number of betting shops on the high street intensifies.
The UK bookmaker said it planned to close a net 40-50 betting shops this year –
closures less a small number of openings – after adding a net 200 shops over the past
two years.
The move comes amid increasing pressure on bookmakers over fixed odds betting
terminals in shops.
The betting terminals, which account for £1.5bn a year of revenues to the industry,
are the subject of scrutiny from politicians of all parties because of concerns about
potential addiction among customers.
The government is awaiting research on the possible effects of fixed-odds betting
terminals – which can take bets of £300 a minute – on customer behaviour. In the
meantime it is demanding that bookmakers implement harm-reduction measures.
A store closure programme by bookmakers would be a sharp reversal of the trend
seen over recent years, when a large number of betting shops have opened on high
streets, often taking over units vacated by retailers.
According to the latest figures from The Local Data Company, a retail information
provider, and PwC, the professional services group, betting shops are one of the few
outlets increasing on British high streets. The number of betting shops rose by 2.18
per cent in the first half of 2013, while the number of photographic shops, video
stores, shoe shops and furniture stores all declined.
Ladbrokes’ move also raises another potential concern for the British high street. As
the bookmaker has been opening stores in high footfall areas for the past couple of
years, it could afford to close some in secondary locations possibly putting more
pressure on more marginal high streets.
The developments also come at a delicate time for Ladbrokes, which is battling to
turn round its digital business.

2. Last September, Ladbrokes warned on profits after results at its digital division fell
short of expectations.
The company said at the time that digital profits for 2013 would be between £10m
and £14m, compared with a consensus market forecast of £27.5m.
Almost a year ago, the bookmaker formed a partnership with gambling software
provider Playtech, hoping to bolster its online gaming. But chief executive Richard
Glynn said he had failed to appreciate the impact of trying to implement the new
Playtech platform alongside the existing one powered by Microgaming, which
provides Ladbrokes‘ online casino and poker games.