600 jobs in bookmakers at risk, says head of Ladbrokes

UP TO 600 jobs are at risk in bookmakers’ shops around the Republic, according to one of the industry’s chief executives.

Joe Lewins, chief executive of Ladbrokes Ireland, told The Irish Times yesterday about 150 bookie shops are at risk because the recession has eaten into their revenues.

The shops, owned mainly by smaller independent operators, support up to four jobs each, meaning their closure could result in 600 people being out of work.

Mr Lewins said his chain closed four of its shops last month as they were losing money and added that he hoped the business would not have to axe any further outlets.

There are 1,102 bookie shops in the Republic. These businesses have seen revenue fall over the last three to four years as punters reduced their bets.

Bookmakers including Ladbrokes are set to ask Minister for Agriculture Simon Coveney, who is responsible for the Republic’s horse racing and breeding industries, for changes they believe will increase the tax take from betting and boost their revenues.

Mr Coveney this week took the first step in a review of funding for horse racing, which was based on the betting tax levied in bookmakers, by seeking submissions from all interested parties including the betting industry.

Bookies want the tax changed from a 1 per cent charge on betting turnover to a 10 per cent levy on their gross profits. A bookmaker’s gross profit is the total amount staked by punters less that handed back in winnings.

The big three – Ladbrokes, Paddy Power and Boylesports – have gross profit margins of about 11 per cent while smaller players make about 10 per cent. Mr Lewins said switching to a gross profits tax would result in about €3 million extra for the State, as it would result in the big three paying more tax while limiting the liability of the smaller players.

The industry also wants to be allowed to keep shops open until 9.30pm six nights a week, September to April. Bookies are only allowed late opening on Friday nights during the winter. A further five nights would increase revenues, Mr Lewins said.

At the same time, bookies want to be allowed to introduce ipad-style tablets that will give customers access to online betting. This would increase revenues over the counter and boost profits.

Mr Lewins calculated the three measures would ease the pressure on at-risk businesses by boosting revenues and add approximately €10 million to the betting tax take.