London-based betting company Ladbrokes claimed nearly £102 million ($138.2 million) from the UK government’s furlough scheme throughout 2020 and 2021, despite its online profits soaring during the pandemic. The Entain subsidiary was among bookmakers which benefited from consumers turning to online gaming amid extended lockdowns enforced during the pandemic.
Ladbrokes has been credited as having claimed a total of £101.5 million ($137.6 million) in the past two years, according to The Guardian, which reports that accounts published at Companies House show the business made claims of £57.5 million ($77.9 million) in 2020, while a further £44 million ($59.6 million) was claimed in 2021.
During 2020, the company’s betting shops, which also include popular UK brand Coral, remained closed for extended periods. Moreover, the business missed out on revenues from sporting events, which were canceled at the time. Due to these factors, Ladbrokes revenues for 2020 slumped from £983 million ($1.3 billion) to £681 million ($923 million).
However, revenues for parent company Entain over the same period hit £3.6 billion ($4.8 billion), unchanged on the previous year, with pre-tax profits of £114 million ($154.5 million), according to the previously cited news source.
What’s more, the company recently revealed further growth in its global online betting and gaming verticals, as proven by 23 consecutive months of rising revenues in the division. This is partly credited with bored households turning to online gambling amid lockdowns.
While all companies affected by the pandemic, many of them in the gaming industry, were allowed to claim funds from the government’s Covid furlough scheme, many firms have now returned the cash after strong online operations allowed them to still post positive financial results.
However, Ladbrokes has so far declined to repay the furlough money saved despite its strong online operations. In comparison, rival William Hill repaid £24.5 million ($33.2 million) in furlough money claimed, while Paddy Power, owner of Flutter, did not make any claims for furlough money. This is despite both businesses having a smaller number of sites than the Ladbrokes and Coral brands.
“The furlough scheme was a sensible and highly welcome policy intervention that helped us, as one of the country’s largest retailers, to maintain the livelihoods of more than 14,000 retail colleagues on full pay,” an Entain spokesman said, as cited by local media. “Whilst the virus is still with us and the outlook, although improving, is still far from certain, the board will continue to keep the situation under review.”
Entain CEO Jette Nygaard-Andersen tackled the issue in her first profile interview since taking over at the helm last year. During the interview with The Telegraph, she said the company was considering returning the money to taxpayers, but defended retaining the money as it allowed the bookmaker to keep its staff on full pay.
“The furlough schemes were put in place for a reason. The reason was a pandemic – which, by the way, we are still in the midst of,” she said. However, it was hinted at the possibility of returning the money in months to come.