More than 200 jobs are set to go at bookmaker Ladbrokes with the UK firm informing staff that up to 39 of its shops in Ireland are to close.
Ladbrokes operate just more than 100 shops across the country and so the closures would represent more than a third of its bricks and mortar operations if all go ahead. A small number of shops in Northern Ireland are also said to be at risk.
The betting group has started the process of informing staff of its proposals and a consultation process will take place over the coming weeks with the closures expected to take place by the end of May. A total of 226 jobs are currently understood to be at risk.
In a statement to The Irish Times the company said: “We continually review our retail estate to ensure our business remains competitive and financially sustainable. These planned closures in the Republic of Ireland are not a decision we take lightly and reflect sustained cost pressures, long‑term changes in customer behaviour and the growing competitive threat from the unlicensed market.
“Our priority now is to engage constructively with colleagues throughout the consultation process, with a strong focus on redeployment wherever possible. Ladbrokes remains committed to Ireland and to operating responsibly within a sustainable retail footprint.”
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The move follows a similar one of rival Flutter, the owner of Paddy Power, which announced it was closing 28 shops here late last year along with a similar number in the UK.
Both companies cite increased labour, energy and property costs along with the suggestion of a growth in illegal gambling, especially in pubs.
Ladbrokes is understood to have made representations to the regulatory authorities here about the issue.
More widely, the betting industry has been transformed over the past couple of decades by the growth of online gambling while the over-the-counter element of the business has faced growing challenges and decline.
The shift has been accompanied in the relocation of many of the sector’s jobs and it was reported on Monday that Ladbrokes’ parent company, Entain, had opened new offices in Gibraltar where it is already the largest private sector employee.
Among other brands, the Entain group also owns Coral in the UK, a 50 per cent stake in Bet MGM in the US and Bwin a a major sports betting brand operating across much of mainland Europe.
As the industry has moved online it has become far more fragmented with a significant number of new entrants seeking to win a portion of the growing revenues available. Trade publications put the total annual value of the Irish gambling market at €2.5 billion, with much of this generated by online casino games.
Ladbrokes’ Irish operation will continue to employ about 350 staff at its remaining locations. It declined to say which shops had been earmarked for closure, saying that it needed to engage with staff first.