Flutter Entertainment plans to close around 100 Paddy Power betting shops in the UK and Ireland by the end of 2026, which could mean a reduction of approximately 20% of the brand’s retail presence.

Under this review, around 400 jobs are at risk. Flutter UK and Ireland acknowledged the importance of their retail estate but mentioned challenges in the trading environment, higher gambling taxes, rising costs, intense competition, economic volatility, and a shift of customers to online platforms as factors leading to the closures.

Flutter stated that supporting impacted employees is their immediate focus.

Impact on Racing Funding

The closure of Paddy Power shops adds to the pressure on the UK’s retail betting landscape. Recent closures by Evoke and Betfred have raised concerns about the long-term sustainability of the sector. These closures could also impact funding for British racing through the Horserace Betting Levy and media rights payments.

According to Betfred, each shop contributes approximately £30,000 ($41,000) annually to racing. The Betting and Gaming Council (BGC) estimated that betting shops provide around £140 million ($188 million) per year to British racing.

BGC’s CEO highlighted the decline in shop numbers and warned policymakers about the fragile financial relationship between racing and retail bookmakers.

Challenges Ahead

The betting industry is facing regulatory and fiscal challenges, including proposed financial risk checks that could impact racing bettors. The potential changes could lead to a reduction in levy income and drive customers towards unlicensed gambling sites.

The BGC emphasized the importance of regulated bookmakers in supporting racing and protecting customers from the risks associated with the unlicensed market.