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Ladbrokes declared ₤ 102m furlough regardless of online boost
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7 January 2022
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ByBen King Business reporter, BBC News

Bookmaker Ladbrokes declared ₤ 102m from the furlough plan, despite fast development in online wagering making up for all losses from the closure of shops.

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

Since the pandemic started parent business Entain has really increased profits, driven by strong online growth.

Entain stated the money secured 14,000 jobs, and is "under evaluation."

The biggest claimers from the furlough scheme were primarily those for whom Covid lockdowns meant high falls in revenue - airlines, pub companies, leisure groups, stores, restaurants and caterers.

One company stands out in the list - Ladbrokes, the UK's largest operator of wagering shops, with 2,845 facilities branded Ladbrokes or Coral.

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

Its parent company, FTSE 100-listed video gaming giant Entain, has a huge online gambling service, and customers who couldn't wager in shops during the dark days of lockdown flocked to sites and apps rather.

Last April's Grand National climaxed for the yohaig code biggest online sports wagering occasion in the UK.

this promotion code indicated that in spite of lockdowns, Entain's 2020 revenues were unchanged from the year before at ₤ 3.6 bn, and it even handled to tape a revenue of ₤ 114m. In the first nine months of 2021 earnings grew 8%.
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Entain is also well placed to benefit from the explosive growth of online wagering in the US through its BetMGM joint .

₤ 102m furlough claim

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

Accounts for Ladbrokes Gaming and Betting Ltd, a subsidiary business of Entain, filed with Companies House and published on Thursday reveal that it declared ₤ 57.5 m of furlough in 2020.

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

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

A spokesperson for Entain stated: "The furlough plan was a sensible and highly welcome policy intervention that assisted us, as one of the country's biggest sellers, to preserve the livelihoods of more than 14,000 retail associates on full pay.

"Whilst the virus is still with us and the outlook, although improving, is still far from certain, the Board will continue to keep the scenario under review."
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Entain is legally entitled to declare the cash, and there is no tip that it did anything wrong in making the claim or keeping the cash.

However rival 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, stated: "The greed of these business, that derive vast make money from addicted bettors, never stops to amaze.

"Any business with a clear sense of morality would instantly hand this promotion code cash back to the UK taxpayer."

A variety of business in other markets decided to return furlough funds when the impact of the pandemic proved less extreme than at first feared - consisting of housebuilders Redrow, Barratt and Taylor Wimpey, Games Workshop, and distribution giant Bunzl.

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

Betfred claimed a minimum of ₤ 46.6 m in furlough
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Betfred, which operates 1500 betting stores, likewise made significant furlough claims despite rising earnings.
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It claimed ₤ 28.1 m in furlough the year ending 27 Sep 2020, according to company accounts.

In addition, a Betfred subsidiary business, Done Brothers (Cash Betting) Ltd, claimed somewhere in between ₤ 18.5 m and ₤ 37.5 m from Dec 2020 to May 2021, according to HMRC data (which only offers a range, not a particular figure).

The overall for the group includes up to in between ₤ 46.6 m and ₤ 65.6 m, though these figures do not consist of any claims it might have made in October and November 2020.

Betfred Group saw turnover fall from ₤ 621m to ₤ 525m in the year ending 27 September 2020, the latest figures 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 consisting of ₤ 98m resulting from a successful lawsuit against HMRC for VAT paid on fixed-odds betting terminals from 2005 to 2013.
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A Betfred spokesperson said: "Thanks to the Government's Job Retention [furlough] Scheme we have actually not had to make a single redundancy due to the pandemic and we will continue to invest in our shops on the high street."

Coronavirus lockdown procedures

Job Retention Scheme

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