Betfred brothers become UK’s biggest taxpayers with £400m contribution

• Fred and Peter Done paid £400.1m in taxes for 2024-25, nearly 50% more than the previous year.
• Bet365 owners Denise, John and Peter Coates ranked fifth with £227.1m contribution.
• Combined gambling industry tax payments come as the sector prepares for a remote gaming duty increase to 40% in April 2026.

Fred and Peter Done, the brothers behind Betfred, have been named the UK’s biggest taxpayers for the first time. They contributed £400.1m in taxes during 2024-25, according to the Sunday Times Tax List published this week.

The Warrington-based operators saw their tax bill jump by almost 50% from £273.4m the previous year. The brothers, who founded the business in 1967, topped the annual rankings ahead of other high-earning individuals and betting industry rivals.

Denise, John and Peter Coates, owners of bet365, ranked fifth on the list with a £227.1m tax contribution. The combined payments from both gambling families totalled £627.2m.

Gambling duty drives tax payments

The Done brothers’ tax contribution included substantial gambling duties generated by Betfred’s network of high-street betting shops. The Sunday Times report said Betfred’s high-street shops paid almost £200m in gambling duty in 2024-25 alongside £14m in business rates.

Tax exodus concerns persist

The 2026 list highlighted an ongoing departure of wealthy individuals from the UK. Fourteen of those featured now reside overseas, representing one in nine people on the tax list. Locations include Monaco, Jersey, Portugal, Dubai and the United States.

The top 100 taxpayers paid a total of £5.758bn in taxes, up from £4.985bn a year earlier. Many paid more following changes to corporation tax rates and other levies introduced by the Labour Government.

Sector faces tax increases

The gambling industry faces major tax changes starting April 2026. The remote gaming duty will rise from 21% to 40%, targeting online casino games and similar products. In April 2027, the tax on digital sports betting will increase from 15% to 25%, though horse racing will remain at 15%.

Betfred’s land-based betting shops will not be affected by these changes, as the retail sector rate remains unchanged. However, the company’s online operations will face the higher rate alongside other operators.

The government projects the changes will raise over £1bn annually from 2027. Officials maintain the higher taxes are justified by greater harms associated with online gambling compared to traditional betting.

Other notable mentions

JD Wetherspoon founder Tim Martin ranked eighth on the list with a personal tax contribution of £199.7m. His company operates 794 pubs and paid a total of £837.1m in taxes last year across corporation tax, VAT, business rates and gaming duties.

Other notable names included JK Rowling at 36th with a £47.5m bill and Ed Sheeran at 64th with £19.9m in tax payments.

According to HMRC data, the top 1% of earners in the UK, those earning more than £219,000 before tax, currently contribute around 26.6% of all income tax receipts. That share has fallen from 30.7% in 2021-22, partly due to frozen income tax thresholds and the relocation of some high earners abroad.

The Done brothers’ position at the top of the tax list demonstrates the substantial contribution of the gambling sector to UK public finances, even as the industry prepares for a major shift in its tax obligations over the coming years.

Industry analysts have warned that the tax increases could push operators to reduce investment and may drive some consumers to unlicensed platforms.