There was something of a consolidation amongst the high street betting fraternity during the 2022/23 financial year just gone – a welcome relief after the horrors of the health crisis.
Indeed, the overall loss of 3.6% of betting shops in the UK from April 2022 to March 2023 was reflective of the high street trends for the retail sector at large – according to reports, around 50 shops per day, on average, closed permanently last year.
The UK Gambling Commission published its annual look at the state of affairs for betting shops in the UK, and once again the numbers for that 2022-23 timeframe showcased a trend of decline.
In fact, the number of UK high street betting shops still operating as of April 2023 has dipped below 6,000 for the first time in decades.
- UK betting shops (2021/22) – 6,219
- UK betting shops (2022/23) – 5,995
- Percentage Change: -3.6%
2022/23: A Snapshot
With the global emergency now behind us, life had returned to normal by April 2022.
But the effects of the lockdown periods – and the strains they placed on businesses and growth – were still being felt.
Many high street retailers, from shops to restaurants, reported a significant downturn in footfall in 2022/23, which was attributed to anything from reluctance and nervousness on the part of some shoppers – the health situation was still very much a factor at times last year – to the changing dynamics of retail, with more and more people heading online.
The UK betting scene was not immune to those patterns either, with a noticeable shift in punters placing their bets on websites and apps – rather than in their local bookmakers’ shop.
Price Waterhouse Coopers published their state of play for the UK retail sector in January 2023, reflecting on the 12 months previous. They identified eight sectors with the most rapid decline – only banks and financial services providers had experienced more closures than betting shops.
Surprisingly, the overall statistics for the industry were strong; confirmed by the gross gambling yield data between April 2022 and March 2023:
- Total gross gambling yield (2021-22) – £14.1 billion
- Total gross gambling yield (2022-23) – £15.1 billion
- Percentage Change – +7.0%
The data for the physical sector saw GGY increase 20.6% in 2022/23 compared to the previous period, however this should be taken with a pinch of salt: many betting shops, bingo halls, casinos and arcades were closed for large periods of 2021/22 due to restrictions.
Meanwhile, gross gambling yield for online betting was up 2.8% in 2022/23, compared to the prior financial year.
Reasons for Betting Shop Closures (2022/23) – A Challenging Retail Environment
With the closure periods thankfully behind us and a full sporting calendar – which included the football World Cup in November-December 2022 – to enjoy, the 2022/23 should have been a boom time for sports betting.
And it was, really, if you consider the gross gambling yield of the sector for the financial year, as well as other indicators of market strength.
In reality, the 3.6% decline in the number of high street betting shops in the UK falls into line with the general pace of downturn for most retail niches.
According to the 2022/23 data, a staggering 151,474 jobs were lost in UK retail during the financial year, with more than 5,500 shops closed due to insolvency.
Meanwhile, 11,636 shops were permanently shuttered by large brands as part of cost cutting exercises – a trend that the UK gambling industry had been following since the new FOBT regulations rolled out in 2019.
“Rather than company failure, rationalisation now seems to be the main driver for closures as retailers continue to reduce their cost base at pace,” said Joshua Bamfield, the director of the Centre for Retail Research (CRR).
And, of course, we lost some big retailers for good in 2022: Joules, TM Lewin and McColls just some of those that went out of business on the high street.
When you consider all of that, the 3.6% downturn in the number of UK betting shops was perhaps par for the course.
Confirmed Betting Shop Closures 2022-23
In previous years, the major betting brands had undertaken a programme of mass shop closures, with dozens at a time closing their doors.
That wasn’t so much the case in 2022/23, with individual closures – likely due to cost cutting and consolidation – more prevalent.
It was somewhat ironic that Ladbrokes closed the final betting shop left in Marlborough, the market town a stone’s throw from the North Wessex Downs, where many horse racing trainers are based.
The firm also closed a Gloucestershire outlet, while in January Paddy Power closed one of their flagship shops in Cardiff city centre.
William Hill and Coral also departed St Mary Street in the city, with the brands mentioned responsible for numerous individual shop closures across the UK.
But it hasn’t all been doom and gloom. Some firms have been expanding their empires, with the likes of BoyleSports and Jennings Bet opening new shops across the UK.