Betfred has warned that it may be forced to shut all 1,287 of its UK betting shops if Chancellor Rachel Reeves proceeds with a proposed tax hike on the gambling sector in the upcoming budget.
The operator stated that the potential levy increase, reportedly worth up to £3.2bn, could wipe out its profits, leading to the closure of its entire retail network and the loss of around 7,500 jobs. The warning comes as gambling companies intensify lobbying efforts against the rumored tax rise, which the government is said to be considering to help reduce a £30bn public finance deficit.
Fred Done, the co-founder of Betfred, mentioned:
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.
Joanne Whittaker, Betfred’s chief executive, added:
The most frightening element is we’re going to lose the whole retail business. I’m not scaremongering … I’m not being alarmist.
The gambling sector has intensified its lobbying amid growing speculation that Chancellor Rachel Reeves may increase the tax rate on sports betting companies from 15% to 30%, and on online slot games from 20% to 50%.
The proposal has been endorsed by former Prime Minister Gordon Brown, who, along with the Labour-affiliated Institute for Public Policy Research, estimates that the changes could generate around £3.2bn in additional revenue. Brown suggested that the extra funds could help combat child poverty in the UK, emphasizing that the betting and gaming industry, worth £11.5bn excluding the lottery, paid only £2.5bn in taxes last year.
Meanwhile, industry leaders have warned of serious consequences if the tax hike goes ahead. Last week, William Hill announced it might close up to 200 betting shops, threatening 1,500 jobs, while Entain CEO Stella David cautioned that higher gambling taxes could result in more shop closures and prompt companies to shift investments abroad.
A Treasury spokesperson responded to a closure threat from Betfred’s bosses, mentioning that they do not comment on speculation around future changes to tax policy.
The spokesperson added:
We are consulting on bringing online betting in line with other forms of online gambling to cut down bureaucracy. It is not about increasing or decreasing tax rates, and we welcome all views.
In its most recent earnings report, Betfred disclosed an operating profit of £500,000 on revenues of £900m, following several asset writedowns in 2023. The company has not yet published its 2024 financial results, a year in which it faced a £3.25m fine from the Gambling Commission for breaches related to social responsibility and anti-money laundering regulations.
