Betfred is exploring opportunities to expand into the Adult Gaming Centre (AGC) sector, commonly referred to as slot arcades. The news comes as the company is in the midst of closing over 130 shops as it reorganizes following the UK government’s imposition of heavier taxes.
Betfred to Expand Into AGCs, Rumors Say
According to sources who first spoke with NEXT.io, Betfred is exploring a move into the AGC market, a step that would make it the only retail betting shop operator with a presence in both sectors. The plans could ultimately involve converting some existing betting shops into AGCs. However, no final decisions have been made regarding the future of any specific locations.
AGCs are gambling arcades primarily offering slot machines alongside other gaming products. The sector has expanded rapidly across towns and cities in the UK in recent years, with operators such as Merkur and Admiral significantly growing their footprints.
Sources have suggested that Betfred is looking to open its new AGSs, particularly in the north of England. The company could also look to convert some of its closing betting shops into AGCs, subject to securing the necessary license approvals.
However, a move into the AGC sector may bring fresh regulatory challenges and potentially expose the business to further tax increases. In the days before being unveiled as Prime Minister, Andy Burnham voiced strong opposition to AGCs, arguing that their round-the-clock operation contributed to social harm.
600 Jobs Lost as Betfred Closes Shops
By closing a total of 132 shops, Betfred loses about 10% its total footprint. The closures follow the near doubling of Remote Gaming Duty earlier this year, with Betting Duty also due to increase from April next year.
Betfred CEO Joanne Whittaker said the affected shops had been well run and supported by dedicated staff, but argued that the current fiscal and regulatory environment had made it impossible for the operator to continue trading across its entire estate. He said that the to-be-closed shops are staffed by dedicated colleagues, and it is hard to see any of them close. Whittaker also explained that the company’s priority right now is to support the colleagues affected, and to continue serving customers and communities across the rest of its network.
Betfred doesn’t seem like it can take a break, as in other recent news, the company was fined $1.2 million after the United Kingdom’s Gambling Commission found numerous social responsibility failures.