The financial year 2020-21 was one of the toughest in living memory for UK bookmakers, with their betting shop numbers taking an almighty hit.
As per the UK Gambling Commission’s reporting, by March 2021 there were 7,681 betting shops in operation.
Due to the health crisis, the reporting of 2019-20 data – which would have been collated during the midst of the restrictions in April 2020 – is sketchy at best.
So, when comparing to the completed data for the 2018-19 financial year, the numbers read:
- UK betting shops (2018/19) – 8,423
- UK betting shops (2020/21) – 7,681
- Percentage Change: -8.81%
The unique nature of restrictions has entirely changed the face of UK gambling – maybe for one year only, maybe forever.
The total gross gambling yield of the British betting sector was £14.2 billion in 2020-21, which equates to a downturn of 0.6% when compared to the period April 2018-March 2019.
And yet, the total gross gambling yield of the online sector was up a staggering 8.1% – to £6.9 billion – when compared to the same timeframe.
All told, the number of licensed UK gambling operators by March 2021 has reached 2,439 – a decrease of 5.4% on April 2019-March 2020 data, as a result of some firms leaving the market altogether.
Here’s the tale of the tape for one of the most challenging years for the betting industry in the post-war era.
Please note that the Gambling Commission’s data for this period was revised in July 2022.
Reasons for Betting Shop Closures (2020/21)
The global health emergency, which left the UK under restrictions from March-July 2020 and again in November-January 2020, saw local towns and city centres deserted by necessity, with non-essential retailers – like betting shops – closed for much of the period.
Despite being able to open, with restrictions in place, from July 2020, the decision taken by some operators was that the cost of doing so would outweigh the benefits – particularly with some members of the public still nervous about re-integrating in public spaces.
The hand of operators was forced, to some extent, to the point that betting shops that were barely making any money before the events of 202o have been closed permanently during the 2020-21 financial year.
This also created what we might call a ‘generational’ shift in gambling behaviour. More punters have embraced online sports betting and casino games; creating accounts and downloading apps. It’s likely that many won’t return to betting shops even now that restrictions have been lifted.
Remote gambling saw an uptick of 8.1% in 2020-21… and that’s despite much of the sporting calendar being wiped out or altered dramatically…
A Lack of Sports
A complete overhaul of the sporting schedule saw bookmakers take less money than they would have forecast before the break-out of the crisis.
So, at a time when costs needed to be cut, closing betting shops that broke even or made a marginal profit was an easy decision to make.
Europe’s biggest football leagues, including the English Premier League, were suspended. They would return, albeit behind closed doors, although some – including France’s Ligue 1 – were ended prematurely with games still left to be played. The Champions League restarted after a three-month hiatus.
All of which upset the normal rhythm of football punters, many of whom may have lowered their stakes or stopped betting entirely during this period – contributing to the financial challenges faced by UK betting shops.
Horse racing was able to continue, for the most part, although another catastrophe for the sector saw the cancellation of the Grand National meeting – almost routinely the most bet-upon sporting event in the UK, and a betting shop favourite.
Cricket’s T20 World Cup has been postponed until November 2021, while the 2020 edition of Wimbledon was scrapped altogether.
Events on the PGA TOUR were cancelled, as was the Open Championship – the first time since World War II that the UK’s only golf major hasn’t been held. The Masters was delayed by seven months, with less betting interest when it finally did come round in November.
Even as betting shops were able to re-open last year with restrictions, they were hampered by a decimated sporting calendar that saw multiple revenue streams taken away.
Confirmed Betting Shop Closures 2020/21
One of the hardest hit firms has been William Hill, who announced in August that they wouldn’t be reopening 119 of their 1,500 UK betting shops – around 8% of their entire empire.
That was part of a cost cutting exercise, as William Hill – like all major operators – struggled in the spring and summer; at one point, their annual revenues, year for year, were down an eye-popping 57%.
Other firms were impacted too, with Entain – right at the end of the financial year in March 2021 – confirming plans to shut 300 Coral and Ladbrokes shops over the next three years. That equates to around 10% of their portfolio, with 100 closures expected in 2021.