Betfred Chief says company’s entire UK high street betting network could vanish under proposed tax hikes
Summary
Fred Done, co-founder and chairman of Betfred, has warned that the company could close all 1,287 betting shops across the UK if proposed gambling tax increases go ahead, putting about 7,500 jobs at risk. Done told the BBC that tax rates rising to around 35–40% would leave no profit in the retail business and force closures. The warning coincides with Chancellor Rachel Reeves reportedly considering higher levies on the sector; supporters argue extra revenue could be used to tackle child poverty and gambling harm.
Key figures cited: Betfred reported nearly £1 billion in revenue last year but only £500,000 in operating profit after writedowns. Done says roughly 300 outlets are already loss-making and a 5% tax rise would increase that to about 430. Industry bodies fear higher taxes will push customers to unregulated offshore operators. The IPPR has suggested much higher rates could raise as much as £3.2bn.
Article Date: 2025-10-20T04:28:05+00:00
Key Points
- Fred Done warns 1,287 Betfred shops could close if gambling taxes rise significantly, risking roughly 7,500 jobs.
- Chancellor Rachel Reeves is reported to be considering higher levies on gambling firms; the IPPR estimates large increases could raise about £3.2bn.
- Betfred made nearly £1bn in revenue but only c.£500,000 operating profit after writedowns; about 300 outlets are currently loss-making.
- A modest 5% tax rise would, according to Done, push loss-making outlets from ~300 to ~430.
- Industry groups warn heavy taxation could drive punters to offshore, unregulated operators, increasing related risks.
- Wider cost pressures (employer National Insurance, minimum wage) have added c.£20m to Betfred’s annual costs.
- Other operators (Evoke/William Hill, Paddy Power) are also flagging potential shop closures under higher taxes.
- Supporters of higher taxes point to estimated social costs of gambling harm (c.£1bn–£1.77bn annually) to justify increases.
Why should I read this?
Quick and blunt: this isn’t just another industry gripe. If you care about UK high street jobs, gambling regulation, or how tax policy can reshape retail and drive activity offshore, this is relevant — and it could change the high street you recognise. Read to spot who stands to lose and why policymakers are under pressure.
Context and Relevance
This story sits at the intersection of fiscal policy, public-health concerns and the structural shift from brick-and-mortar to online retail. Ministers face pressure to raise revenues and address gambling harm; operators warn that aggressive tax hikes will accelerate closures and push customers to offshore sites, undermining regulation and consumer protections. The outcome will affect employment, local retail footprints and the regulated gambling market’s tax base.
For professionals in gaming, retail, public policy or local government, the piece highlights immediate commercial risks and longer-term regulatory trade-offs: balancing revenue and social-cost mitigation against preserving regulated domestic provision and jobs.
