Ladbrokes Could Save Gbp 40 Mill By Halting High Street Expansion

Reduction in High Street betting shop plans could free up GBP40 million for the burgeoning digital operations

The Telegraph newspaper reports that British gambling group Ladbrokes is expected to announce plans to halt the introduction of new High Street betting shops, currently the subject of political concern.

By doing this, the company could reduce capital expenditure from GBP 100 million to GBP 60 million, freeing up GBP 40 million to accelerate the further development of the company's burgeoning online gambling strategy.

With over 2,300 retail betting shops, many offering the much-maligned Fixed Odds Betting Terminals, Ladbrokes is among the highest of the High Street betting profiles, yet the company has still had to issue profit warnings in recent months as it struggles to make more of a success of its digital operations following a relatively new agreement with Playtech plc.

The Telegraph notes that with increasing political pressure for restrictions on FOBTs, and tighter local council controls over betting shop openings, the Ladbrokes preference for digital is perhaps sensible.

A Ladbrokes spokesman appeared to confirm at least part of the newspaper report, commenting:

"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."

UPDATE: Ladbrokes subsequently confirmed that it will be closing 40-50 High Street betting shop outlets in the near future.

Online Casino News Courtesy of Infopowa

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The man with the plan here at Casinomeister. Bryan Bailey has been running Casinomeister since its launch in June of 1998. He has watched the industry grow from its primeval stage to what it is now. The Meister has attended nearly 100 conferences in the past 20 years and has either been a speaker or a panel moderator for at least 60 events. He has always been an advocate of fairness and reason and is known to like German beer, a good Scotch, and astrophography.

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