Betfred to close all UK betting shops if gambling tax rises proceed

• Betfred has announced that it may close all of its 1,300 UK betting shops if the government raises gambling duties in the upcoming Budget.
• The potential shutdown would put up to 7,500 jobs at risk across the United Kingdom.
• Industry leaders argue the proposed tax hike would make retail betting unprofitable, threatening the whole high street sector.

Betfred, one of the UK’s largest bookmakers, has stated that it will be forced to close all 1,300 of its high street betting shops should Chancellor Rachel Reeves proceed with significant increases to gambling taxes, anticipated in the November Budget.

According to multiple local reports, including the Sunday Times and the BBC, the company’s leaders say this move could jeopardise as many as 7,500 jobs and would be “the biggest threat” to the industry in nearly six decades.​

Tax plan details spark industry alarm

Chancellor Reeves is reportedly considering raising the tax on sports betting from 15% to 30%, and duties on machines and online gaming from 20% up to 50%.

The potential changes, being promoted by former Prime Minister Gordon Brown and Labour backbenchers, are forecast to raise approximately £3.2 billion, with the aim of addressing child poverty by removing the two-child benefit cap. The Institute for Public Policy Research has backed these estimates.

Fred Done, Betfred’s co-founder and chairman, has voiced strong concerns about the financial viability of the business if tax hikes proceed.

​”I think this is the biggest threat I have known since I’ve been in the industry,” said Fred Done, Chairman.

“On a 1-10 scale it’s a ten, all the alarm bells are ringing here.”

Joanne Whittaker, Betfred’s chief executive, wrote to Chancellor Reeves to argue the case, noting her initial belief that high street outlets would not be impacted.

“We’ve got people in the Treasury who don’t understand our business,” commented Joanne Whittaker, Chief Executive Officer of BetFred.

Wider impact on retail betting

Betfred joins other major operators warning of store closures if taxes rise. William Hill’s parent firm, Evoke, has suggested up to 200 store closures, and Paddy Power recently announced 57 shop closures, though not all are directly tied to tax issues.​

Betfred has also pointed to the financial pressures of increased National Insurance contributions and the minimum wage, which have already added £20 million to its operating costs.

Out of all Betfred locations, three hundred shops are currently operating at a loss, with that number set to rise if tax hikes are implemented.

“If the tax went up to even 35 per cent there is no profit in the business… we would have to close it down,” said Fred Done, Chairman.

The Betting and Gaming Council, representing the industry, described the proposed hikes as “economically reckless”, warning that such measures could shift consumers to offshore or unlicensed operators, reducing both tax revenue and consumer protections.​

Sector outlook and stakeholder concerns

The UK currently has about 5,900 licensed betting shops employing 46,000 people. If Betfred shutters its estate, industry insiders warn that rivals would likely do the same, resulting in lasting changes for both high streets and communities dependent on retail gaming.​

Getty Images Rachel Reeves

Chancellor Reeves has maintained that betting companies should contribute their fair share.

Rachel Reeves, Chancellor, speaking at a Labour Party conference in Liverpool, said to ITV:

“I’m the chancellor who set up the review of gambling taxes. No other chancellor has done that, because I do think there’s a case for gambling firms paying more.

“I talk to a number of businesses from all sectors of the economy including the gaming sector. On a personal level I have never bet in my life on anything, but they make an important contribution to the economy.

“But they should pay their fair share of taxes and we will make sure that happens.”

The deliberations around gambling taxes come as policy makers search for additional fiscal resources. The outcome could redefine the future of high street betting, with Betfred’s warning acting as a signal to operators, regulators, and investors of the potential enduring effects on jobs, services, and government funding models.​