Betfred founder warns tax rise could shut all UK betting shops and cut 7,500 jobs

Speaking to the BBC, Done described the possible tax increases as the “biggest threat” he has faced in over five decades in the industry. He said that rising duties could make many retail operations “unviable,” as profit margins are already under significant pressure. According to Done, around 300 of Betfred’s shops are currently loss-making, and even a modest 5% increase in tax rates could raise that figure to over 400.

Betfred, founded in 1967, operates more than 1,400 betting shops across the UK alongside a growing online platform. The company currently pays 15% general betting duty on sports wagers, 20% on gaming machines, and 21% on online casino stakes. Done warned that raising these rates to between 35% and 40% would “leave no profit in the business,” forcing closures across the board.

Chancellor Reeves recently stated that there is “a case for gambling firms paying more,” echoing comments from former Prime Minister Gordon Brown, who suggested that increasing gambling taxes could generate an additional £3.2 billion ($4.29 billion) annually for social welfare programs.

However, industry figures argue that such measures could backfire. The Betting and Gaming Council (BGC) has repeatedly cautioned that steep duty rises risk driving customers toward unregulated offshore websites that do not pay UK taxes or adhere to local safeguards. Done voiced the same concern, saying, “People will still bet, but they’ll bet offshore with bookmakers who don’t pay anything to this country.”

His warning follows similar statements from other major gambling operators. Earlier this month, Evoke, the parent company of William Hill, said it might close up to 200 betting shops if new tax measures are introduced. Meanwhile, Paddy Power has already announced the closure of 57 shops across the UK and Ireland, citing rising costs and market pressures.

The UK’s retail betting sector has struggled in recent years due to the pandemic, tighter regulations on fixed-odds betting terminals, and a growing shift toward online gambling. Analysts say that additional tax burdens could accelerate this decline, particularly for smaller and mid-sized operators.

In August, Betfred appointed Aidan Barry as Trading Director to strengthen its retail and online trading divisions, part of a wider restructuring effort led by CEO Joanne Whittaker.

A spokesperson for HM Treasury declined to comment on speculation about potential tax increases ahead of the budget announcement.