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The potential closure of all 1,287 Betfred stores on the UK High Street looms if the Chancellor, Rachel Reeves, decides to increase taxes on gambling firms, warned Fred Done, the company’s co-founder and chairman in an interview with the BBC. Done emphasized that such a move could put 7,500 jobs at risk and cited tax hikes as the biggest threat facing the industry during his 57 years in the business. This sentiment echoes similar concerns raised by other gambling brands regarding the impact of escalating taxes.
Former Prime Minister Gordon Brown has influenced Reeves to consider raising taxes on the gambling sector with the aim of using the generated revenue to alleviate child poverty. The Institute for Public Policy Research (IPPR) estimated that a potential 50% tax increase on the industry could yield £3.2bn, though this proposal was criticized by the Betting and Gaming Council as economically reckless. Resistance from betting companies, such as Betfred and William Hill, has been evident, with warnings of mass store closures should tax burdens escalate.
Fred Done emphasized the financial implications of tax increases on UK gambling companies, expressing concerns over the potential closure of his High Street shops if taxes rise significantly. He cautioned that even a moderate increase to 40% or 35% could eliminate profits, leading to substantial job losses. Moreover, the closure of the UK gambling industry could drive customers to overseas bookmakers who pay no taxes to the country. Done highlighted the additional financial strain on companies like Betfred due to recent increases in employer National Insurance Contributions (NICs) and the minimum wage.
Critics have underscored the detrimental social and financial effects of gambling, with Office for Health Improvement and Disparities research estimating the excess costs related to harmful gambling. Calls for higher taxes on the industry, particularly in online betting, have been made to reflect the negative impact on vulnerable individuals. Charity GambleAware has advocated for additional regulations on advertising to shield children and youths from potential harm. Despite these concerns, Done maintains that UK-based betting shops provide superior protections for problem gamblers and contribute more tax revenues compared to online and offshore alternatives. The outcome of lobbying efforts to maintain current tax rates remains uncertain, with Reeves declining to comment on potential changes to tax policy when approached by the media
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