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Despite surging online profits, London-based betting firm Ladbrokes has benefited a total of £102 million ($138.2 million) from the UK government’s furlough scheme during the first two years of the pandemic.
Part of the Entain group which also holds popular brands such as Coral, party poker and bwin, the operator had to close some of its betting shops in the UK for extended periods as a results of lockdown measures and other restrictions. As a result, revenue tanked from £983 million ($1.3 billion) in 20219 to £681 million ($923 million) a year later.
Withdrawing from the furlough scheme, the Guardian reports that Ladbrokes claimed £57.5 million ($77.9 million) in 2020, and another £44 million ($59.6 million) in 2021.
Ladbrokes parent company Entain actually thrived during the pandemic with £3.6 billion ($4.8 billion) turnover with pre-tax profits of £114 million ($154.5 million), according to the Guardian.
In addition, the betting giant recently noted further growth in its global online betting and gaming verticals, experiencing 23 consecutive months of rising revenues amid lockdowns
While many betting firms took to the furlough scheme, most of them have already paid back the funds following positive financial numbers. William Hill managed to repay £24.5 million ($33.2 million) and Paddy Power, part of Flutter, did not even make use of the emergency funds.
In an interview with the Telegraph, Entain’s CEO Jette Nygaard-Anderson made an attempt to ask for understanding as she noted that the company was considering returning the money to taxpayers, but defended retaining the money as it allowed the bookmaker to keep its staff during these difficult times. She said:
“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.”