Betfred Exploring AGCs After Shop Closures; First Steps Already Taken

Betfred is reportedly weighing up the prospect of operating in the Adult Gaming Centre (AGC) arena. The decision comes amid the UK betting giant’s decision on Friday to close 132 shops following a hike in gambling taxes announced in the budget last year.

Equating to roughly 10% of Betfred’s overall footprint, up to 600 roles could be lost in the process. Betfred, nevertheless, is trying to cushion the blow by working in the AGC space, and should it achieve its aim, it would be the only current regulated retail bookie to traverse both spaces.

Taking a different course

Betfred has been forced to readjust quickly, and it arrives at a hugely challenging time for bookmakers. The economic uncertainty sparked by the near doubling of Remote Gambling Duty (RGD) from 21% to 40% from April, along with the jump in general betting duty paid on online sports betting from 15% to 25% in April 2027, has provoked widespread fear and consternation throughout the industry.

However, Next.io suggests Betfred has identified AGCs as a way to respond to adversity. Indeed, the report indicates Betfred could convert existing shops into AGCs, but no concrete decisions have been made about the futures of specific establishments.

The report goes on to state that Betfred has bought a small operation in the AGC space. Indeed, seven land-based locations are thought to have been identified which would require relevant licenses, but Betfred hasn’t officially spoken out on the matter.

A brief AGC flirtation

Although at first glance, a move into AGCs would seem to represent uncharted territory for bookies, this isn’t the case. Before Entain’s acquisition of Ladbrokes Coral, the retail betting operator experimented with AGCs when they were under GVC’s leadership, but they had little success.

Yes, they owned three now-defunct shops in Birmingham, but the operator retreated as things didn’t pan out in the way they hoped and the project was later scrapped.

A precarious situation

Betfred’s prominence in the betting industry can’t be taken for granted. As far as horseracing is concerned, for example, Betfred’s cull of shops will present a significant financial hit. Figures bandied about suggest Betfred contributes £30,000 a year in levy and media rights payments, and the shop closures could see racing haemorrhage £4 million a year.

Moreover, Betfred founder Fred Done bemoaned the shutting down of shops, likening it to ‘killing your own babies’.

He said:

“It’s taken me 60 years to build this chain up. After the closure of these [shops] we’ll be at 1,090, so we’ll have closed over 600 shops over the last six years. It’s like killing your own babies.

“As bookmakers, I think we were the best in the world. We took on the world — we were so good. We’re no longer the best because of what’s happened to us with taxation, regulation, and making it so difficult.

"This is people’s lives, and we’ve got a heart, and I’ve got a sad heart today. I’m so sorry to make these sorts of announcements.”

AGCs under the spotlight

Current Prime Minister Andy Burnham previously attacked AGCs while Mayor of Manchester, insisting that they were targeting the ‘most vulnerable in our communities’.

To address the endemic, Burnham has fixed his sights on AGCs to fund his proposed 20% business rate cuts, which in turn, would provide financial relief to pubs and live music venues.

With Betfred, stepping into AGCs would be a bold move on their part. Whether it pays off remains to be seen.