Bookmaker William Hill has announced that it is consulting on plans to close about 700 betting shops.
It said a large number of redundancies was anticipated, with 4,500 employees at risk of losing their jobs.
The firm added that the move followed the government’s decision in April to reduce the maximum stake on fixed-odds betting terminals to £2.
Since then, the company added, it had seen “a significant fall” in gaming machine revenues.
“The group will look to apply voluntary redundancy and redeployment measures extensively and will be providing support to all colleagues throughout the process,” its statement said.
“Subject to the outcome of the consultation process, shop closures are likely to begin before the end of the year.”
William Hill currently has 2,300 shops and 12,500 employees.
The government cut the maximum stake on fixed-odds betting terminals, which had previously been £100, because of widespread concern that players were able to lose large amounts of money in a short space of time.
Some critics described the machines as the crack cocaine of gambling.
At the time, the Association of British Bookmakers warned that the move would lead to job losses in betting shops.