All 1,287 Betfred shops across the UK could disappear from the High Street if Chancellor Rachel Reeves hikes taxes on gambling firms, the company's co-founder and chairman, Fred Done, has told the BBC. Done, who established Betfred in 1967, warned that a closure of this magnitude would put 7,500 jobs at risk. The billionaire businessman described tax rises as the 'biggest threat' to the. Industry in his 57 years, a sentiment echoed by other gambling brands.
Government Stance and Industry Resistance
Chancellor Reeves has suggested that gambling firms should pay their 'fair share of taxes. ' Former Prime Minister Gordon Brown has also encouraged Reeves to increase taxes on the sector, proposing the revenue be used to reduce child poverty. The Institute for Public Policy Research (IPPR) estimated that additional taxes, potentially as high as 50%, could raise £3. 2 billion. However, the Betting and Gaming Council, representing gambling companies, labeled Brown's plan 'economically reckless,' arguing it would push gamblers into the black market. William Hill's owner Evoke also warned earlier this month that up to 200 retail outlets could close under higher taxes.
Betfred's Financial Concerns
Fred Done emphasized that an increase in taxes on UK gambling companies would compel him to close his High Street shops. He stated, 'It [tax] doesn't even need to go up to 50%, while 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. ' Done revealed that 300 of his shops are 'currently losing money,' and a mere 5% increase in gambling taxes would raise that number to 430. He warned that once the UK industry closes, people would. Simply bet offshore, with no tax revenue benefiting the country.
Wider Industry Challenges and Social Impact
Done noted that recent increases in employer National Insurance Contributions (NICs) and the minimum wage have already added £20 million to Betfred's costs. While acknowledging the inevitable shift to online gambling, he believes that without tax hikes, High Street shops still have 'probably 20 years of life. ' In its most recent annual results, Betfred reported nearly £1 billion in revenue but an operating profit of just £500,000 after writedowns, while critics highlight the social and financial harm caused by gambling, with IPPR's Prof Ashwin Kumar advocating for higher taxes, especially on online betting, to address these negative consequences. Done, however, argues that UK-based High Street betting shops offer better safeguards for problem gamblers and generate tax revenues, unlike offshore rivals. Despite his appeal, Done believes the odds are '10 to one. Against' winning over the Chancellor, suggesting many betting shops face closure. The HMT declined to comment on speculation regarding future tax policy.
