Ladbrokes Halt High Street Expansion

Ladbrokes Plc, announced the halt of its planned retail bookmaker expansion on UK high streets. The gaming and sports betting operator, who had a troubled 2013, halted plans to open betting shops in the UK due to growing concerns regarding UK policy regarding  Fixed Odds Betting Terminal (FOTBs).

The move will see annual corporate expenditure fall from £100m to £60m, as Ladbrokes look to re-strategize plans for both its retail and online business units. Ladbrokes have opened 200 new betting shops in the past two years, and currently have a retail inventory of more than 2,300 retail betting outlets.

Current debate regarding UK sports betting retail has witnessed much negative backlash made public by UK politicians representing multiple parties, against betting shop targeting poor areas of the UK and FOTB’s. UK Prime Minster David Cameron, commenting that a government inquiry will be likely to be scheduled regarding  FOTB’s and UK high street betting. Ladbrokes management have halted any plans on expansion of high street properties, until the matter is made clearer by the UK government.

Ladbrokes spokesman said: “This year we are likely to be a net closer of shops as we focus on optimising our investments in the retail estate and look to deal with some of the non-contributing shops.”

With retail plans halted, industry commentators believe that Ladbrokes will focus plans on its digital products and offerings. The operator who issued four straight profit warnings, had underlined its fledgling online products as a concern, and a business unit that needed much attention and improvement.