The Digital Transformation of Betting Shops and Casinos

Betting shops and casinos owned by major brands are slowly closing their doors. Is this more a sign of the changing times as opposed to declining revenue in the sector?

High street betting shops were once a place of social interaction and entertainment. While the industry still brings in £153 million per year in betting receipts, trends have shifted in the digital age. People are moving online for their entertainment and betting needs. The closure of physical stores by major retailers like Paddy Power is symbolic of this consumer shift towards a digital future.

Betting Shop Closures as a Turning Point

A report in March last year, conducted by the Local Government Association (LGA), revealed that 1200 betting shops have closed. This represented a decline of 30% in five years, and it is set to increase. A range of high street bookmakers have announced plans to close their doors for good.

Paddy Power confirms almost 60 shop closures

One of the major brands shutting up shop is Paddy Power. A household name known for its sports sponsorships and bold advertising, it has stated that at least 57 shops will close across the UK and the Republic of Ireland. This includes 29 in the UK, 1 in Northern Ireland and 29 in the Republic of Ireland.

Around 247 staff are at risk of redundancy. The company’s parent group Flutter UKI have said they will redeploy staff where possible.

According to an article on iGaming expert, a spokesperson from Flutter UKI added. “In light of increasing cost pressures and challenging market conditions, we can confirm that we will be closing 29 shops across the UK (including one in NI) and 28 in Ireland within the next month. We are continually reviewing our high street estate, but it remains a key part of our offer to customers, and we are seeking to innovate and invest where we can as we adapt to different customer trends and needs.”

Why Punters Are Moving Online

Bookmakers are no different to many other businesses you may have once found on the high street. The rise of the smartphone and connectivity has meant people don’t need to leave their house, either to buy an item or access entertainment. Yet there are multiple reasons why people are moving online.

Accessibility and Convenience

Having an app downloaded to a device when betting is extremely convenient. Even accessing through a browser allows you to place a bet anytime, anywhere. With easy access to markets and bet builders, it is also simple to see odds and outcomes. Combined with single wallet solutions for easy payment, it becomes easy to see why people choose online solutions.

Leading brands are now prioritising digital growth

Like many industries, the promise of artificial intelligence and its capacity is looming, and it promises to transform the customer experience. Many leading brands are now turning their focus to this, prioritising digital growth.

Take companies such as EquinEdge. They tackle data on horse racing, using jockey, horse and trainer statistics along with track conditions to get a statistical overview of a horse’s likelihood to win. Not only can this inform consumers, but it can also transform how betting odds are calculated and presented. This is just one of many ways the betting sector is changing.

Strategic Partnerships and Exclusive Deals

Online bookmakers can also provide strategic partnerships not available to their physical counterparts. This is particularly evident when it comes to the bridge between online betting and casino gaming. Many big sites now collaborate directly with casinos to promote exclusive offers.

One perfect example of this is arguably Britain’s most famous horse racing publication, The Racing Post. Its website now has a casino section which ranks and reviews the best online providers. This is mainly based on the promotions available, along with ready-made guides on topics such as free spins no deposit offers.

The Impact on the Future of Betting and Casinos

As shops have moved on, bookmakers have been one of the last few businesses remaining on the high streets of Great Britain. Yet this is set to change once again, with betting and casinos increasingly becoming a digital pursuit as opposed to a physical one.

This will undoubtedly mean tighter scrutiny of the online gambling sector. It will most probably come from digital advertising. UK regulations are already extremely strict and are designed to enhance player protections regarding problem gambling.

How this changes remains to be seen, but looking at other countries in similar situations provides some clues. The Netherlands has been overhauling its gambling laws, particularly regarding digital provisions. This has seen it create robust know your customer systems and increase taxation.

However, they have not always had the desired outcome. The UK government must tread carefully to protect players and the wider industry as new technology and markets unfold.