Ladbrokes claimed ₤ 102m furlough despite online boost

7 January 2022

ByBen King
Business press reporter, BBC News

Bookmaker Ladbrokes claimed ₤ 102m from the furlough scheme, despite quick development in online wagering making up for all losses from the closure of shops.

Accounts released on Thursday show that Ladbrokes claimed ₤ 57.5 m in 2020, and the BBC understands it declared a more ₤ 44m this promotion code year.

Since the pandemic started moms and dad company Entain has in fact increased profits, driven by strong online development.

Entain stated the cash safeguarded 14,000 jobs, and is "under review."

The greatest claimers from the furlough scheme were mostly those for whom Covid lockdowns implied steep falls in earnings - airline companies, pub companies, leisure groups, stores, restaurants and catering services.

One business sticks out in the list - Ladbrokes, the UK's largest operator of wagering stores, with 2,845 premises branded Ladbrokes or Coral.

For though it had to close them for large parts of 2020 and 2021, it had a lifeline - online.

Its parent business, FTSE 100-listed gaming giant Entain, has a big online betting company, and consumers who could not wager in shops throughout the dark days of lockdown gathered to sites and apps instead.

Last April's Grand National climaxed for the most significant online sports wagering event in the UK.

this promotion code indicated that despite lockdowns, Entain's 2020 earnings were the same from the year before at ₤ 3.6 bn, and it even handled to tape-record a profit of ₤ 114m. In the very first nine months of 2021 incomes grew 8%.

Entain is also well positioned to take advantage of the explosive development of online betting in the yohaig code US through its BetMGM joint venture.

₤ 102m furlough claim

Despite a strong monetary efficiency, Ladbrokes made a big furlough claim.

Accounts for Ladbrokes Gaming and Betting Ltd, a subsidiary company of Entain, submitted with Companies House and published on Thursday show that it claimed ₤ 57.5 m of furlough in 2020.

The BBC comprehends the company declared around ₤ 44m in 2021, taking the total to ₤ 102m.

According to BBC analysis of information released by HMRC, that would be among the 20 most significant furlough claims for 2021.

A representative for Entain stated: "The furlough scheme was a practical and extremely bet9ja's welcome offer policy intervention that assisted us, as one of the country's largest merchants, to preserve the livelihoods of more than 14,000 retail associates on complete pay.

"Whilst the virus is still with us and the yohaig code outlook, although improving, is still far from specific, the Board will continue to keep the situation under review."

Entain is lawfully entitled to declare the money, and there is no recommendation that it did anything incorrect in making the claim or keeping the cash.

However competing bookmaker William Hill chose to return ₤ 24.5 m of furlough cash in August 2020, pointing out the "strength of the post-lockdown recovery."

Iain Duncan Smith MP, the vice chair of the Gambling Related Harm All Party Parliamentary Group, said: "The greed of these companies, that derive vast benefit from addicted gamblers, never ever stops to surprise.

"Any business with a clear sense of morality would immediately hand this money back to the UK taxpayer."

A variety of business in other industries opted to return furlough funds when the effect of the pandemic showed less severe than initially feared - consisting of housebuilders Redrow, Barratt and Taylor Wimpey, Games Workshop, and circulation huge Bunzl.

Flutter, owner of the Paddy Power wagering stores, did not tap the furlough plan at all.

Betfred declared at least ₤ 46.6 m in furlough

Betfred, which runs 1500 wagering shops, likewise made considerable furlough claims in spite of increasing profits.

It claimed ₤ 28.1 m in furlough the year ending 27 Sep 2020, according to company accounts.

In addition, a Betfred subsidiary company, Done Brothers (Cash Betting) Ltd, claimed someplace between ₤ 18.5 m and ₤ 37.5 m from Dec 2020 to May 2021, according to HMRC data (which just gives a variety, not a specific figure).

The total for the group amounts to between ₤ 46.6 m and ₤ 65.6 m, though these figures don't include any claims it may have made in October and November 2020.

Betfred Group saw turnover fall from ₤ 621m to ₤ 525m in the year ending 27 September 2020, the most recent figures readily available, as lockdowns required its shops to close.

However the group still made significant revenues, up from ₤ 171m to ₤ 205m, lifted by some one-off gains including ₤ 98m arising from an effective lawsuit versus HMRC for VAT paid on fixed-odds wagering terminals from 2005 to 2013.

A Betfred representative stated: "Thanks to the Government's Job Retention [furlough] Scheme we have actually not needed to make a single redundancy due to the pandemic and we will continue to purchase our shops on the high street."

Coronavirus lockdown procedures

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