All betting outlets on the territory of England are set to cease operation as of November 5th as part of the new national lockdown that Prime Minister Boris Johnson announced over the weekend. The move is expected to have a massive negative impact on the local betting and racing sectors.
As it was revealed, racing, along with other elite sports will be able to continue their activities behind closed doors, while there was no such option for them at the time of the first nationwide lockdown in the spring of 2020. English betting shops shut on March 20th and were allowed to resume operation from June 15th under some strict social distancing, safety and sanitation measures, including reduced capacity.
Although betting businesses warned that the spring closures constituted an extremely hard blow for their operations, betting outlets and all other retail establishment businesses that have been categorised as “non-essential” are set to close for a second time this year. The newly-announced closures are expected to cause even more financial difficulties for the gambling operators, as their levy income and media rights are to be greatly affected.
For the time being, the precise economic impact of the mass closures cannot be predicted because information regarding media rights is not publicly available. Still, one of the biggest independent bookmakers in the country – Jenningsbet – has revealed that each of its betting outlets pays approximately £36,000 in media rights for greyhound and horse racing pictures on an annual basis. The company has also shared that its retail turnover accounts for about one-third of the money bet on racing.
Betting Shop Owners Concerned about Their Businesses’ Financial Future
A significant number of betting shops had already ceased operations in areas with Tier 3 coronavirus restrictions across England, while other high-street businesses remained operational under strict safety and social distancing measures. The move had already caused some turbulence among the betting and racing sectors.
The chief executive officer of the gambling industry’s trade body, the Betting & Gaming Council, criticised the authorities about the move.
For the time being, Prime Minister Johnson’s announcement reflected only the upcoming closures of the 5,681 betting shops in England, so it is probably safe to assume that the 772 betting outlets in Scotland and the 283 betting outlets in Northern Ireland are set to remain operational until further action by their local governments. The newly-announced shutdown covers a busy period for the racing industry, including the three-day November meeting of Cheltenham, the Ladbrokes Trophy fixture at Newbury and Haydock’s Betfair Chase card. Furthermore, no less than three rounds of the English Premier League (EPL) fixtures are set to take place during the lockdown period, with high-street bookmakers unable to take bets at the time.
What troubles betting shop operators across the country is the uncertainty in the sector, as it currently remains unknown what is to happen from December 2nd. It is still unclear whether the so-called non-essential retail businesses will be allowed to resume operation as of that date or whether they will face Tier 3 restrictions.
- Author
Daniel Williams
