Business rates: government relief a 'shot in the arm' for beleaguered bookmakers

The embattled bookmaking sector was given a helping hand by the government on Wednesday after betting shops were made exempt for paying business rates for the rest of the year.

Betting shops had initially not been eligible for the tax break, which had been granted to leisure and hospitality businesses impacted by the coronavirus pandemic, a position described as a "hammer blow" by the Betting and Gaming Council (BGC).

Calls for bookmakers to receive the relief intensified after last week's announcement that betting shops would be closed as part of the ramped-up social-distancing measures imposed by prime minister Boris Johnson.

The message was heeded on Wednesday by chancellor Rishi Sunak, who said: "We are determined to do whatever it takes to support businesses during Covid-19, which is why we have extended business rates relief for the high street.

"Today, I am removing some of the exclusions for this relief, so that retail, leisure, and hospitality properties that have closed as a result of the measures announced by the prime minister in his statement on Monday will now be eligible for the relief."

Bookmaker shares rally

Shares in bookmakers with significant retail estates rallied on Wednesday after a rocky period in the stock market that has wiped millions off their value.

William Hill shares rose from 55.5p to 71.88p on Wednesday, although they had dropped marginally to 70p at the close of trading on Thursday.

Shares in GVC Holdings, owner of Coral and Ladbrokes, increased from 436.7p to 483.65p on Wednesday and closed at 507.4p on Thursday, while shares in Flutter Entertainment, the parent company of Paddy Power, increased from 7,096p to 7,300p on Wednesday and were up to 7,410p at the end of play on Thursday.

The moves by government to include betting shops in the tax break were praised by the BGC, which represents 90 per cent of the gambling industry, as a "shot in the arm" coming alongside the promise to pay 80 per cent of salaries of furloughed workers.

Michael Dugher, BGC chief executive, said: "On top of the help on employment, extending help on business rates to all businesses that have had to shut down is another much-needed shot in the arm that will help to protect tens of thousands of jobs.

"Our industry will in turn do its absolute utmost to help with the fight against the virus and play our part in this historic national effort, including offering up staff and premises to help. And although gambling has fallen markedly with betting shops and casinos closing, and with the lack of sport which accounts for a big chunk of online betting too, we are also stepping up our safer gambling measures at this time."

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