William Hill which owns betting shops in Honiton, Sidmouth, Exmouth and Seaton has announced plans to close 700 licensed betting offices.
The company says the closures could put 4,500 jobs at risk nationwide.
It has entered into a consultation process with staff and the location of under-threat shops has not been revealed.
In a statement, a spokesperson for William Hill said: “This follows the Government’s decision to reduce the maximum stake on B2 gaming products to £2 on 1 April 2019.
“Since then the company has seen a significant fall in gaming machine revenues, in line with the guidance given when the Government’s decision was announced in May 2018.
“A large number of redundancies is anticipated with 4,500 colleagues at risk. The group will look to apply voluntary redundancy and redeployment measures extensively and will be providing support to all colleagues throughout the process.
“Subject to the outcome of the consultation process, shop closures are likely to begin before the end of the year.”