Bookies warn they may not last the course business is on final furlong

National Lottery: Betting industry calls for cut in tax as changed gambling habits put thousands of shops at risk of closure have put the future of independent betting shops in danger, say owners

GLENDA COOPER

As the National Lottery approaches its first birthday, bookmakers claim that unless the Government takes rapid action they will be forced out of business.

On Friday, the independent bookmakers Stanley Leisure announced that half-year profits were "significantly below" that achieved for the comparable half year in 1994-95. Three days earlier, Vernons Pools had announced 150 redundancies. Both companies blamed the National Lottery.

The bookmakers want the Government to reduce betting tax by 2 per cent, allow bookmakers to bet on lottery numbers and accelerate the deregulation process which will permit jackpot and fruit machines in the shops.

Last month a report from the Henley Centre estimated that 2,400 of England's 9,300 betting shops would have to close, unless the Government cut betting tax by 2 per cent. The "big three" - Ladbrokes, Coral and William Hill - own about 5,000 shops between them; the rest are owned by small independents, who are suffering most.

Don Bruce's father and grandfather both worked as bookmakers and he entered the business in 1948. He got his first shop in 1963 (cash betting only became legal in 1960) and now owns 12 shops around London, which are currently losing him pounds 50,000 a year.

He would like to sell his shops, but fears trading conditions are so bad at the moment that no one would buy.

"It's never been worse," he said. "We've got some good and some marginal shops. The marginal shops are just hanging on while we wait for legislation to come in."

Mr Bruce's greatest loss has been from what he calls the "roulette wheel" customers - who have been lured away by scratchcards.

"There is always an element that use racing but are not interested in the form - the sort that always put a 10p treble on Traps 1 and 2 at Hackney," he said. "They bid on a small scale on famous names. One way or another, scratchcards have attracted this sort of punter. And that's made marginal shops more desperate."

He says that actual turnover has not fallen: "But it has effectively fallen because we've been doing much more hours with the introduction of evening racing and Sunday racing. So we're making less per meeting."

If a shop does not open on a Sunday, the punter will take his bet - and return to claim his winnings - elsewhere. So although most shops will only get 40 per cent of customers they would on a weekday, they are too scared of losing further custom not to open.

But it would be wrong to blame all retail ills on the lottery, according to Ray Stone, assistant director of the Henley Centre. In March, the centre brought out a report, Lottery Fallout, which looked at the effect of lottery spending last December and January.

At that time, some of the 10,000 shops and garages with lottery terminals had seen sales rise by as much as 20 per cent since November 1994. Food stores had doubled sales at their tobacco counters.

The report also warned that pubs and restaurants were likely to see trade fall, or at least shift around, as so many people were staying home later to watch the draw. It suggested that cinemas might have to reschedule Saturday evening shows, or even announce the draw themselves.

However, Mr Stone said that these findings were preliminary and some were out of date six months on. Lottery Fallout 2, a report which looks at the first full year, will be published at the end of November.

"People should be asking different questions," he said. "It is not all the National Lottery. We should look at what else has made a difference. For instance, the hot weather this summer made people spend a lot more on drinks."

Mr Bruce disagrees. He says he will hang on until the Budget in just over three weeks time to see if the cut in betting tax which would create a "level playing field" appears. "But we can't hang on much longer."