Betfred Begins Shop Closure Consultation as UK Tax Pressures Bite, Gambling

Britain's increase in gambling-related taxation is beginning to have a visible impact on retail betting employment, while the Gambling Commission has postponed publication of the evidence supporting its Financial Risk Assessment (FRA) framework until the autumn.

At the same time, the latest financial results from Europe's leading gambling operators highlight sharply contrasting fortunes, with FDJ UNITED slipping into a first-half loss as Lottomatica continues to strengthen its online-led growth.

The week has been dominated by five major developments across the gambling sector, ranging from significant retail job losses in Britain to evolving responsible gambling regulation and contrasting corporate earnings.

Betfred confirmed on 31 July 2026 that it has launched a formal consultation over plans to close 132 betting shops beginning in September, a move that would eliminate more than 600 jobs. If implemented, the closures would reduce the bookmaker's retail estate by more than one-tenth, leaving approximately 1,100 shops operating across the UK. The company currently employs around 7,500 people.

Chief executive Joanne Whittaker described the decision as one reached with "deep regret", stressing that the closures are not solely a consequence of increased gambling taxation.

Instead, she pointed to a combination of mounting financial pressures, including higher employer National Insurance contributions, rising wage costs, increased taxation, and continuing economic uncertainty. According to Whittaker, these cumulative challenges have made the restructuring necessary.

Betfred is not the only operator reducing its retail presence. Flutter Entertainment announced in October 2025 that Paddy Power would shut 57 betting shops across the UK and Ireland, while Evoke informed investors in January that it had responded to higher betting duties through a combination of shop closures and broader cost-cutting measures.

Meanwhile, the Gambling Commission has confirmed that it will delay publication of the evidence underpinning its proposed Financial Risk Assessments until the autumn. Acting chief executive Sarah Gardner outlined the decision in a letter dated 22 July 2026 addressed to the Culture, Media and Sport Committee.

Gardner explained that the regulator intends to publish the complete dataset, evidence base, and methodology supporting the FRA proposals together with its formal consultation response later this year. She noted that some information will be released only in aggregated or summarised form where commercial sensitivity requires it.

Explaining the timing, Gardner said the delay reflects the regulator's implementation schedule. She stated that the consultation response should be informed by implementation groups being established during the summer, bringing together gambling operators alongside credit reference agencies to help shape the practical rollout of the new framework.

Gardner also acknowledged that making the announcement before releasing the complete consultation response falls "outside our normal process", recognising that the sequencing differs from the Commission's usual approach.

Regarding the scale of the proposed checks, Gardner indicated that fewer than the top 3% of gambling customers would be subject to a Financial Risk Assessment. Furthermore, she said that 97% of these assessments are expected to be frictionless, significantly exceeding the 80% frictionless target originally outlined in the 2023 Gambling Act Review White Paper.

Although racing organisations will not participate in the implementation groups, the British Horseracing Authority has accepted an invitation to meet separately with the Commission.

Responsible gambling regulation also moved further towards mandatory consumer protections this week as the Responsible Gambling Council (RGC) published Evolving Expectations on 27 July 2026. The report is the first instalment in a planned six-part Sector Signals series examining regulatory trends across multiple gambling jurisdictions.

Drawing on developments in the United Kingdom, Norway, Sweden, and the Australian state of Victoria, the report identifies four broad areas where regulatory expectations are increasingly aligning. These include age-specific consumer protection measures, financial and credit restrictions, carded play together with pre-commitment systems, and enhanced training requirements for gambling operators.

The report highlights several examples illustrating these regulatory shifts. In Britain, the statutory gambling levy generated just under £120 million during its first year, with funding allocated according to a 50-30-20 model: 50% directed towards treatment services, 30% to prevention initiatives, and 20% to research.

Sweden's expanded prohibition on gambling-related credit, which the Responsible Gambling Council describes as "the first comprehensive ban of its kind in the EU," entered into force on 1 May 2026.

Victoria also continued its player protection reforms, with its carded play trial having commenced in September 2025 across all 43 gaming machine venues located within three council areas.

The report concludes that regulators are increasingly prioritising measurable evidence of behavioural outcomes over simply introducing new responsible gambling tools. According to the RGC, regulators are placing greater emphasis on mandatory or default consumer protection settings rather than systems that require players to voluntarily opt in. Five additional reports in the Sector Signals series are scheduled for publication through 2027.

Financial results released during the week also demonstrated the differing pressures facing Europe's major gambling groups.

FDJ UNITED reported its first-half 2026 results on 29 July, revealing that group revenue declined by 4.5% year-on-year to €1.782 billion. The operator recorded a net loss of €16 million compared with a €136 million profit during the same period last year.

Recurring EBITDA fell by 8.4% to €404 million, while adjusted net profit, excluding exceptional items, declined by 19% to €180 million.

The company said that gaming tax increases across France, the United Kingdom, the Netherlands, and Romania reduced revenue by €52 million, cutting overall revenue growth by approximately three percentage points.

Within its French lottery and retail sports betting division, revenue decreased by 3.9% to €1.24 billion. The business attributed the decline to fewer and smaller Euromillions jackpots, while unusually high temperatures during the second quarter also reduced customer traffic at retail locations.

Online gross gaming revenue remained broadly unchanged at €702 million, although reported online revenue fell by 7.4% to €431 million.

Looking ahead, FDJ UNITED now expects revenue to decline by a low single-digit percentage during 2026. The group has also initiated a strategic review of markets within its online business alongside an assessment of non-core assets.

In contrast, Lottomatica Group delivered another strong set of results for the first half of 2026. Revenue increased by 5% to €1.1806 billion, while adjusted EBITDA rose 10% to €465.3 million, producing an EBITDA margin of 39.4%.

Growth was driven overwhelmingly by the online business. Online revenue climbed 13% to €525.1 million, representing 44% of total group revenue. Adjusted EBITDA within the online segment increased by 21% to €303.9 million, with margins reaching an impressive 57.9%.

The group's retail-focused operations experienced more challenging conditions. Sports Franchise revenue declined by 1% to €275.4 million due to less favourable payout conditions, while Gaming Franchise revenue slipped 2% to €380 million.

Lottomatica also strengthened its competitive position in Italy's online gambling market. Total online market share reached 31.6% during the second quarter, representing an increase of 1.1 percentage points compared with the same period in 2025.

Reported net profit improved substantially to €116 million from €68.2 million a year earlier, supported in part by lower finance expenses, which fell to €75.7 million.

Reflecting this performance, the company's board now expects full-year adjusted EBITDA to finish at the upper end of its previously issued guidance range of €940 million to €980 million.

Attention now turns to developments expected over the coming weeks. Betfred's consultation with employees is underway ahead of the planned September closures, with the wider industry watching closely to see whether additional operators follow by reducing their retail estates. The Gambling Commission's implementation groups are expected to begin work during the summer before the regulator publishes both its consultation response and supporting FRA evidence in the autumn. Meanwhile, FDJ UNITED's strategic review of its online markets and non-core assets has commenced, with the company's next major financial update scheduled for 21 October 2026, when it reports third-quarter revenue.

By fLEXI tEAM