Betfred Chief says company's entire UK high street betting network could vanish under proposed tax hikes

Fred Done, co-founder and chairman of Betfred, has warned that all 1,287 of the company’s betting shops across the United Kingdom could close if the government increases taxes on gambling firms, placing 7,500 jobs at risk.

Speaking to the BBC, Done said the possibility of higher taxes represents the “biggest threat” to the industry in his 57 years in business. “If (the tax rate) 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.

His comments come amid reports that Chancellor Rachel Reeves is considering raising levies on the gambling sector in her upcoming budget. Reeves told ITV earlier this month, “I do think there is a case for gambling firms paying more… they should pay their fair share of taxes and we will make sure that happens.”

The proposal has gained support from former Prime Minister Gordon Brown, who has urged the government to use the additional tax income to reduce child poverty. The Institute for Public Policy Research (IPPR) estimated that raising gambling taxes to around 50% could generate £3.2 billion ($4.29 billion) in extra revenue.

The Betting and Gaming Council, which represents the UK’s gambling industry, has described such plans as “economically reckless,” warning that higher taxation could drive bettors toward unregulated offshore platforms.

Done echoed this concern, saying: “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.”

Currently, the UK’s gambling industry pays a range of duties including 21% on online casino gaming, 20% on slot machines, and 15% on sports and horse racing bets. According to Done, even modest increases could make Betfred’s retail network unviable. He said that around 300 of his outlets are already loss-making, and that a 5% tax rise would push the number to 430.

Done also cited wider cost pressures on the business, noting that increases in employer National Insurance Contributions and the minimum wage have added £20 million ($26.84 million) to annual expenses.

He agreed that, similar to other industries, customers are increasingly going online, making it inevitable to close betting shops. However, changes to the tax regime could accelerate the process. “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,” he said, adding that the retail landscape is already being “decimated with closures.”

Betfred reported nearly £1 billion ($1.34 billion) in revenue in its most recent financial year but made only £500,000 ($671,075) in operating profit after asset writedowns. The family-run company operates across the UK, Gibraltar, the US, and South Africa, with both online and retail gambling divisions.

Other major operators have expressed similar worries. William Hill’s parent company Evoke said up to 200 of its betting shops could close if taxes rise, while Paddy Power confirmed plans to shut 57 stores in the UK and Ireland due to “increasing cost pressures and challenging market conditions.”

Critics of the industry argue that gambling firms should contribute more to the public purse. Supporters of higher taxation, including the IPPR, have pointed to the social costs of gambling-related harm, estimated at between £1 billion and £1.77 billion ($1.34 billion to $2.38 billion) annually by the Office for Health Improvement and Disparities.