Betfred says 1,287 betting shops may close if gambling tax is increased

[The Buzz]

Betfred’s entire network of 1,287 betting shops could vanish from UK high streets if Chancellor Rachel Reeves raises taxes on gambling companies, the bookmaker’s co-founder and chairman has warned.

Fred Done, who launched Betfred in 1967 with his brother Peter, told the BBC that such a move could force widespread closures and threaten around 7,500 jobs.

The billionaire said higher taxes pose the “biggest threat” to the industry in his 57 years in business, echoing concerns voiced by other major betting operators.

From BBC:

Reeves has been encouraged by former Prime Minister Gordon Brown to increase taxes on the gambling sector and use the revenue from that to reduce child poverty.

The Institute for Public Policy Research (IPPR) think tank estimated over the summer that additional taxes on the industry, as high as 50%, could raise £3.2bn.

At the time the Betting and Gaming Council, which represents gambling companies, called Brown's plan "economically reckless", saying it would push gamblers into the black market.

Betting companies have resisted calls for taxes to rise. Up to 200 William Hill retail outlets could close if the industry faces higher taxes, its owner Evoke said earlier this month.

Betfred's Mr Done said that if taxes on UK gambling companies increased he would also feel compelled to close his High Street shops.

"It [tax] doesn't even need to go up to 50%. 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. I'm talking job losses. We're talking probably 7,500," he said.

Read more here: https://www.bbc.com/news/articles/c5...m_medium=email

[Mattbar]

Good old Fred he is prone to the odd exaggeration. Any tax will be passed on to the punter and their typical shop customers will carry on using them and will just accept worse odds. If they wanted better odds they would have gone online years ago already. Jim down the pub isn't suddenly going to not visit the Betfred next door after 5 pints because the tax went up.

What is true is that all betting shops are doomed, it is just a matter of how long it will take. Tax rises will probably speed things up a but it will not be the major reason why high street betting dies away.

The bigger and more justified fear is that the higher tax will drive more online customers to the black market. We've already seen that with existing taxes, deposit restrictions and invasive verification and AML checks. Fred is just using the shops and local jobs angle to get public attention, the real impact will be with existing online customers.

[newcustomeroffer]

There's been a few bookies said this kind of thing now, either directly or indirectly related to next month's budget. Paddy are shutting some shops, Hills and Betfred both suggested that they would too if the tax is too deep.

Matt's points on the long-term future of the high street and the black market risk are 100% correct. What gets me is that the potential upside to the government of increasing the tax is £1-3 billion depending on the severity of the hike, yet that number gets almost lost in the rounding when it comes to how much debt interest the UK is paying: https://obr.uk/forecasts-in-depth/ta...overnment-net/

[ocreditor]

Betfred is probably being deliberately bold to soften any regulatory move and rally support - from employees, high-street stakeholders and policymakers. They’re saying: “Raise taxes and we die.” But in reality they may have alternate paths (consolidation, digital pivot) and they’re using the threat of closure as a negotiating tool.

[Pokerface]

As with many industry leaders when there is a threat in changes to taxes they highlight how drastic it will be for jobs and businesses. Will it have an impact? Most likely but probably not as drastic as perceived. Those that want to gamble will continue. That being said, the growth in on-line has been around a long time and surprised brick and mortar shops have survived as long as they have, certainly the number of locations.

Gambling has many similarities to other industries such as alcohol and tobacco. When taxes rise users will look elsewhere and look for lower taxed alternatives.

Continuing to build or rely on brick and mortar is not the future. They should start investing on innovation rather than investing in the past.

[newcustomeroffer]

Paddy Power are the latest to shut some of their shops, this time up to 100 announced by the end of 2026: https://www.racingpost.com/news/indu...-aVNxz7c1WjFz/

[ocreditor]

Paddy Power are the latest to shut some of their shops, this time up to 100 announced by the end of 2026: https://www.racingpost.com/news/indu...-aVNxz7c1WjFz/

The UK market is shrinking fast!

[newcustomeroffer]

The UK market is shrinking fast!

Yeah, the new PM has made a point of lumping High Street bookmakers in with adult gaming centres as something he wants to limit/reduce - the reality of the matter is that the UK tax environment is likely to take care of that anyhow without further intervention.

[newcustomeroffer]

More fallout from the tax rises as bet365 have announced 340 jobs are being cut: https://www.racingpost.com/news/indu...-aDMCy8c3OFEs/