Betfred Warns of Possible Nationwide Shop Closures if Gambling Tax Is Increased

UK bookmaker Betfred has warned that all 1,287 of its High Street shops could shut down if Chancellor Rachel Reeves raises taxes on gambling firms.

Fred Done, the company’s co-founder and chairman, told the BBC that such a move would threaten 7,500 jobs and could spell the end of Betfred’s physical betting operations in the country.

Done, who launched the business with his brother in 1967, described tax hikes as the “biggest threat” the industry has faced in nearly six decades. His warning follows growing calls from policymakers to make gambling firms “pay their fair share.”

Chancellor Reeves recently indicated that she supports the idea of higher levies on betting companies, while former Prime Minister Gordon Brown has urged her to use the revenue to help reduce child poverty. A report by the Institute for Public Policy Research (IPPR) estimated that increasing the industry’s tax rate to 50% could generate as much as £3.2 billion.

However, Done cautioned that even a smaller increase could make his business unviable. “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,” he said, adding that 300 of Betfred’s shops are already running at a loss.

He warned that closing UK-based bookmakers would only push customers toward offshore betting operators that pay no taxes to the British government.

The gambling industry currently faces multiple levies, including a 21% tax on online casino gaming, a 20% duty on slot machines, and general betting duties ranging from 15% to 25%.

Other major betting firms have also voiced concern. Earlier this month, Evoke, the parent company of William Hill, said up to 200 of its shops could close if taxes rise. Paddy Power recently announced plans to close 57 outlets across the UK and Ireland due to mounting costs and market challenges.

Despite acknowledging that more customers are moving online, Done believes that without further tax increases, betting shops could remain on the High Street for another two decades.

In its latest annual report, Betfred generated nearly £1 billion in revenue but posted an operating profit of just £500,000 following asset write-downs. The company operates in the UK, Gibraltar, the US, and South Africa, with investments across both online and in-person betting.

Critics, however, argue that gambling firms should face higher taxes to offset the social harms of addiction. Research by the Office for Health Improvement and Disparities in 2023 estimated the wider societal cost of harmful gambling to be between £1 billion and £1.77 billion.

A spokesperson for HM Treasury said the government does not comment on “speculation around future changes to tax policy.”