The Government of Madrid has announced a significant reduction in the number of land-based betting shops within the Spanish autonomous community, with a reported 60% decrease since 2019. The number of betting shops has dropped from 160 in that year to just 64 currently. Additionally, gambling saloons have seen a decreasing trend of 8%.

During a presentation to the plenary session of the Madrid Assembly, Carlos Novillo, the Minister of Environment, Interior, and Agriculture, highlighted the region’s standing in terms of gambling saloons per capita. Madrid ranks 14th out of the 17 autonomous communities and the two autonomous cities in Spain in terms of gambling saloons per 100,000 inhabitants.

Efforts in Regulation and Compliance

Carlos Novillo provided further insights, noting that the Madrid government has conducted an extensive number of inspections to ensure regulatory compliance. In 2023 alone, up to 27,000 inspections were carried out, with an additional 15,000 inspections conducted so far in 2024. These inspections have shown a decreasing balance of sanctions, which Novillo interprets as evidence of the sector’s adaptation and respect for the current regulations.

“The decreasing balance of sanctions indicates that the sector is adapting to regulation and is respecting it,” stated Novillo during his address. He emphasized that the efforts of the regional government to regulate and control the betting and gambling sector are bearing fruit.

Impact on Accessibility and Compliance

The reduction in the number of gambling establishments, alongside the decrease in sanctions, suggests a trend towards greater compliance by operators with the regulations imposed by the regional government. This compliance potentially leads to a decrease in the accessibility of these premises for residents of the Community of Madrid, contributing to a more controlled gambling environment.

Novillo concluded his remarks by reinforcing the positive outcomes of the regulatory measures, stating, “This trend suggests a greater compliance by operators with the regulations imposed, as well as a possible decrease in the accessibility of these premises for residents of the Community of Madrid.”

Additional Context from Regional Data

Supporting the minister’s statements, regional data indicates that the efforts of the Madrid government are effectively managing the gambling landscape. The comprehensive inspections and subsequent reduction in sanctions highlight the commitment to ensuring a responsible and regulated gambling environment.

As the Community of Madrid continues to monitor and regulate the sector, these measures demonstrate a proactive approach to managing the impacts of gambling on its residents. The government’s actions serve as a model for other regions aiming to balance industry growth with social responsibility.

Source: “La Comunidad de Madrid reduce un 60% las casas de apuestas desde 2019”. MadridActual. May 23, 2024.

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Ireland’s Minister of Finance, Michael McGrath, presented the country’s budget for the upcoming year, omitting any mention of the planned increase in the betting levy. The proposed change, an initiative first championed by the Labour Party, would see the tax rate rise from 2% to 3%, with the additional funds earmarked to support domestic sports projects.

An Increase Would Have Hurt Retail Bookmakers

Despite earlier discussions and support for the increased betting levy, Minister McGrath did not comment on the matter during the budget presentation, instead indicating that the government would explore the possibility of tax raises in the future. This delay in implementing the levy increase is a relief to retail bookmakers in Ireland, who were concerned about additional taxation. 

The Irish Bookmakers Association (IBA) had previously expressed reservations about further betting tax increases, labeling them as unsustainable and detrimental. IBA chair Sharon Byrne noted that the recent economic downturn placed immense financial pressure on betting shops, with many teetering on the edge. The country’s gambling industry is in a tight place, as the number of shops recently reached an all-time low of roughly 750.

If the tax goes up again, they will be in deeper trouble. Hopefully, we have provided enough data and facts to demonstrate how another increase at a retail level is just not sustainable.

Sharon Byrne, IBA chair

Fortunately for betting shops, the new Irish budget omits mentions of levy increases, meaning they will be safe at least until 2024. The delay should hopefully give the government and stakeholders time to consider the best approach for boosting domestic sports without hurting the struggling retail betting sector. Byrne also urged the Irish regulator to address black market operators and safeguard local shops.

The Government Remains Committed to Supporting Sports

The proposal for the betting levy increase hoped to ring-fence additional revenue to fund domestic sports facilities, focusing on supporting football teams and addressing gender equality issues. The Football Association of Ireland (FAI) has requested €517 million ($549 million) from the Irish Government, placing a significant burden on the system. 

Minister McGrath noted that the government needed more time to determine how taxes could effectively support sports organizations in Ireland. He reaffirmed the government’s continued interest in exploring potential tax measures to benefit such initiatives. McGrath added that the current system provided significant reliefs to sporting organizations and charities, but stressed it could do significantly better.

I intend to examine how the tax system can be utilized to further support these organizations… This will involve examining the tax treatment of long-term strategic development funds.

Michael McGrath, Ireland Minister of Finance

The decision to postpone the betting levy increase in Ireland’s budget indicates a measured and deliberate approach by the government in exploring how tax measures can best support domestic sports projects. While the discussion will continue in the coming year, this budget decision provides temporary relief for the retail bookmaking industry.

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Irish gambling company Paddy Power is set to close several shops in the country, local media outlets announced. According to the reports, the operator will be shutting down a total of 21 of its retail locations across Ireland.

The company plans to close the venues in question because of their failure to perform well enough. This move would leave the company with 230 shops in the country.

The reports say that Paddy Power would offer redeployment to many of the workers who will be affected by the closures. However, the company also confirmed that it will have to lay off some employees.

In a statement, Flutter Entertainment, Paddy Power’s ownership group, confirmed the move and said that it will try to redeploy as many of its employees as possible and offer them jobs in close proximity to their existing employment.

Despite that, the company is unlikely to be able to redeploy everyone and will instead offer support to employees it has to part ways with.

However, the closures will unfortunately lead to a small number of job losses. We are consulting closely with colleagues and providing support to those affected by these changes.

Flutter statement

Paddy Power Promised to Support the Affected People

Paddy Power’s chief commercial officer, David Newton, also commented on the matter. He attributed the closures to a recent review of Paddy Power’s estate and the company’s desire to operate efficiently and meet the evolving needs of its customers.

The latest review pointed out some redundancies Paddy Power will now proceed to eliminate. According to Newton, the 21 shops the company is closing are underperforming and don’t benefit the company’s business.

Indeed, a well-invested retail estate remains a key component of our omnichannel strategy. Whilst the majority of our estate continues to perform well and is growing market share, we have decided to close a number of underperforming shops.

David Newton, CCO, Paddy Power

Newton concluded that the decision to close these shops is in no way related to the work of Paddy Power’s employees there. He thanked his “hard-working shop colleagues” for their professionalism and promised that the company would provide the needed support to anyone who is affected by the changes.

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