Betfred Warns of Betting Shop Closures Amid Potential Tax Increase
Betfred co-founder Fred Done has warned that all of the company’s 1,287 betting shops across the UK could shut down if the government raises taxes on gambling firms. The move, he said, would put thousands of jobs at risk and reshape the future of High Street betting.
Warnings from Betfred Leadership
Speaking to the BBC, Fred Done said that Chancellor Rachel Reeves’ proposed tax increase would represent the biggest challenge the industry has faced in decades. According to Done, “It [tax] doesn’t even need to go up to 50%. If it went up to anywhere like 40% or even 35% there is no profit in the business. We would have to close it down. I’m talking job losses. We’re talking probably 7,500.” He said that around 300 Betfred shops are already losing money, and a 5% tax increase could push that number to 430.
Impact on High Street Betting
Done warned that if the UK betting industry were forced to close shops, betting activity would move to offshore operators. “Once the [UK] industry is closed down, it’s gone. People will still bet, but they’ll bet offshore with it. There’s plenty of bookmakers offshore who happen to take the bets, who don’t pay anything to this country,” he said. He acknowledged that customer habits are shifting online but argued that physical shops could still remain viable for up to two decades without additional tax pressure.
The Betting and Gaming Council previously described Brown’s proposal as “economically reckless”, saying it would drive gamblers towards the black market. Other operators have made similar warnings. Evoke, the owner of William Hill, has said that up to 200 of its shops could close if taxes rise. Paddy Power also announced it would shut 57 shops in the UK and Ireland due to cost pressures and market conditions.
Current Fiscal Burden on Operators
Gambling firms in the UK already pay a range of duties, including 21% on online casino stakes, 20% on gaming machines, and 15% betting duty on sports and horse racing wagers. Done added that increases in National Insurance Contributions and the minimum wage have added £20 million to Betfred’s operating costs. Despite almost £1 billion in revenue last year, the company reported only £500,000 in operating profit after writedowns.
Done argued that High Street bookmakers contribute more to safeguarding than offshore and online operators. He said physical locations help identify at-risk gamblers while also generating tax revenue. However, he admitted that online betting will continue to expand: “Slowly it will go online, but we’re talking, without tax increases, we’ve still got probably 20 years of life on the High Street.”
Asked whether his appeal might persuade the chancellor, Done said the odds were low: “We’re 10 to one against.” A spokesperson for HM Treasury declined to comment on potential tax changes. The debate now centres on how to balance public finances, consumer protection and the sustainability of the retail betting sector.