Can UK Retail Betting Take Inspiration from Betfred and Serbia’s Social Scene to Reverse Decline?

The UK retail betting sector continues to grapple with long-term decline, with the latest figures from Q3 2024 showing a 1% fall in gross gambling yield (GGY) to £533 million, according to the UK Gambling Commission. Major players have felt the pinch, with Entain reporting a 2% drop in retail betting revenue in the UK and Evoke seeing a significant 9% decline across its international retail portfolio.

Meanwhile, online gambling is experiencing a boom, fueled by technological advancements and the convenience of access. The Gambling Commission recorded an overall Q3 GGY of £1.32 billion, with online real event betting revenue rising by 6% year-on-year to reach £453 million.

Amid these shifts, Evoke has taken steps to address the retail sector's challenges, including hiring a new retail managing director in September. Measures introduced include the deployment of over 5,000 updated gaming machines from October 2024 to Q1 2025, aimed at improving trading performance in the short term.

What’s Behind Retail Betting’s Decline?

The decline in retail betting mirrors broader changes across industries, as consumers increasingly favor online options over traditional high-street visits. David Hicks, a customer experience (CX) expert and co-founder of XM Coach, suggests that retail betting operators are not doing enough to entice customers into their venues, particularly as online platforms rapidly enhance their offerings.

“You’ve got to make the effort worth the while,” Hicks asserts. “I think gaming is improving a bit online, and that’s why [retail] is losing. There isn’t the attraction, there isn’t the appeal, there isn’t any emotional reason to get me out of my chair and go in there. That’s the big issue, because it costs a lot to put a [shop] on a high street. You better work hard to encourage folks to come in.”

Hicks contrasts the experience in betting shops with his visits to a grocery store in New York, where he is greeted by name and made to feel valued by the staff. “When was the last time you went into a retail location?” Hicks asks. “They’re not particularly welcoming places. There isn’t much to actually drag me in. There needs to be more of an emotional reason for me to actually make that decision. There’s no attempt to have somebody engage you in a conversation. No wonder the numbers are down.”

Betfred: A Retail Betting Success Story

One operator defying the downward trend is Betfred. During its 2022-23 financial year, ending in October 2023, the company’s retail business grew by 3.5% to £577 million. Analysts at Regulus Partners commended Betfred’s successful transition into an omnichannel business, noting that its retail revenue per shop outpaces most competitors, aside from Flutter’s Paddy Power brand, which reported a 9% rise in Q3 retail revenue.

Retail betting remains central to Betfred’s identity. Its founder, Fred Done, opened the first shop in Salford in 1967, and despite the company’s flourishing online presence, the high street continues to be a priority. “We’re still up for it. We still think the betting shop is a very, very important part of people’s communities,” says Mark Pearson, Betfred’s head of media. “Obviously, we’re still owned by Fred (Done), and retail is very much in his blood. He’s still in [the office] most days discussing how we can improve the retail offering.”

A key factor in Betfred’s success lies in its staff’s ability to engage customers on a personal level. Pearson emphasizes, “We’ve got some excellent staff who have worked for us for a long time. They get to know the customers, they get to know their names, little details about them. We get to know what football team they support. When they’re coming into the shops, we have a chat with them, make them feel welcome.”

Pearson adds that Betfred strives to avoid becoming a “faceless operator.” He explains, “We’re not corporate and [when you use one of our shops], you’re having a bet with Fred. He’s been in the game for a long time, but he’s still up for that battle with a punter.”

Lessons from the Balkans

While retail betting faces headwinds in the UK, the sector is thriving in regions like the Balkans, where the split between online and retail betting is approximately 50/50. Lazar Miucin, former managing director of MaxBet, attributes this success to the community-oriented nature of Balkan betting shops.

Unlike the often sterile UK betting shops described by Hicks, Balkan venues offer a social atmosphere complete with food, drinks, and the ability to smoke while watching sports. “When you come to a Balkan betting shop, it’s like you’re in Las Vegas,” says Miucin. “You have extremely comfortable chairs, you have many choices for drinks, you have many choices to eat. That’s what creates the difference.”

Miucin believes other markets could learn from the Balkans’ focus on creating social, welcoming environments for bettors. “The key is to create more social events for people. They want a better experience than they have now. More welcoming, more socialised, more accepted, more entertainment for them inside the shop,” he explains.

Reviving Retail Betting

Hicks argues that retail betting can recover by adopting proven techniques from other retail sectors. “[We could make] retail betting a welcoming environment and actually put the effort into the experience [by] bumping up training for staff. Why don’t we try giving [players] a comfortable space, coffee, sandwiches? I think we’re getting to that inflection point.”

Evoke CEO Per Widerström echoes this sentiment, highlighting plans to modernize self-service betting terminals (SSBTs) to improve customer experiences. “That is going to have a material impact when it comes to our opportunity here and commitment to close the gap versus competition,” Widerström stated during the company’s Q2 earnings call.

Betfred’s success demonstrates that by prioritizing customer service, creating emotional connections, and enhancing the in-shop experience, retail betting can remain a vital part of the gambling landscape, even amid the broader decline of the high street.

By fLEXI tEAM