Fred Done’s Betfred is exploring plans to operate in the AGC (Adult Gaming Centre) space, otherwise known as slot arcades.
Fred Done’s Betfred is exploring plans to operate in the AGC (Adult Gaming Centre) space, otherwise known as slot arcades, NEXT.io has learned.
The Warrington-based bookmaker today (31 July) announced it would close 132 shops across the UK, around 10% its total footprint, with 600 roles being lost in the process.
The closures come in the aftermath of the close to doubling of Remote Gaming Duty earlier in the year, with Betting Duty also set to be raised from April next year.
Joanne Whittaker, CEO of Betfred, said: “These are well-run shops, staffed by dedicated colleagues, and it is incredibly hard to see any of them close, but the current fiscal and regulatory environment has made it impossible to keep trading all our shops.
“Our priority now is to support the colleagues affected, and to continue serving customers and communities across the rest of our estate.”
Multiple sources have told NEXT.io that Betfred is looking to enter the AGC space, which would make it the only retail betting shop operator to straddle both verticals.
This, NEXT.io understands, could ultimately include converting existing betting shops into AGCs, although no concrete decisions have been made regarding the future of specific shops.
One retail betting source told NEXT.io: “Good on them. If it keeps shops open and it keeps jobs, good on them.”
Betfred is understood to have bought a small operation in the AGC space, with up to seven land-based locations, to acquire the relevant licences, although NEXT.io was unable to independently verify this information.
AGCs face tax bombshell
The AGC space itself is facing its biggest threat in years amid recent thinktank proposals to double Machine Game Duty to 40% on a “polluter pays” principal.
Meanwhile, the UK’s new Prime Minister Andy Burnham is on record as having criticised AGCs while Mayor of Manchester. The industry is also being targeted to help subsidise his confirmed policy of lower business rates for pubs and live music venues.
This is not the first time a retail-first betting operator has looked to launch operations in the slot arcade business.
Ladbrokes Coral – prior to its acquisition by Entain (then GVC) – briefly experimented with AGCs across three now defunct shops in Birmingham.
Sources told NEXT.io that specific project “didn’t pan out” and was quietly scrapped.