The co-founder of Betfred, Fred Done, has warned that all 1,287 of the company’s betting shops across the UK could be shut down if the government increases taxes on gambling firms.
Thank you for reading this post, don't forget to subscribe!Done said such a move would threaten 7,500 jobs, calling tax rises the “biggest threat” to the gambling industry in his 57 years of business.
His warning follows reports that Chancellor Rachel Reeves is considering tax hikes for gambling companies to raise revenue and tackle child poverty.
Industry at Risk
The Institute for Public Policy Research (IPPR) estimated that increasing taxes by as much as 50 percent could generate £3.2 billion for the UK Treasury.
However, the Betting and Gaming Council, representing the gambling sector, described the proposal as “economically reckless,” warning that it could push players to offshore betting markets.
Fred Done emphasized that even a smaller tax increase — to around 35 or 40 percent — would make Betfred’s retail business unprofitable.
“If it went up to anywhere like 40%, there is no profit in the business. We would have to close it down. I’m talking job losses—probably 7,500,” he said.
Currently, 300 of Betfred’s shops are reportedly running at a loss, and a 5 percent rise in gambling taxes could push that number to 430.
Done added that once the High Street betting shops disappear, “they’re gone for good,” with gamblers likely turning to unregulated offshore websites.
Social and Economic Debate
Gambling in the UK is subject to multiple taxes, including a 21 percent levy on online casino gaming stakes and a 15–25 percent duty on sports and horseracing bets. Critics argue that gambling companies should pay higher taxes to offset social harms.
Research by the Office for Health Improvement and Disparities in 2023 found the costs of harmful gambling to the UK economy could be as high as £1.77 billion annually.
Prof. Ashwin Kumar of IPPR said, “Most gambling profits come from a small number of people at risk of serious harm. Duties should be higher, like tobacco and alcohol.”
However, Done contends that regulated High Street shops provide safer environments and stronger tax contributions than online or offshore platforms.
He remains doubtful that his plea will persuade the government, saying, “We’re ten to one against,” implying it’s likely that many shops will close.
