Fred Done, co-founder of Betfred, has warned that all 1,287 of the bookmaker’s UK betting shops could close if Chancellor Rachel Reeves raises taxes on gambling firms in the upcoming Budget. In an interview with the BBC, Done described the proposed increase as the “biggest threat” to the industry in his 57-year career, estimating that a 35–40% tax rate would erase profits and result in 7,500 job losses.
The proposed tax hike comes amid growing political pressure. Former Prime Minister Gordon Brown and several Labour MPs have urged the government to increase levies on gambling operators to support public welfare programs. The Institute for Public Policy Research estimates that a 50% tax rate could raise up to £3.2 billion for the Treasury.
However, the Betting and Gaming Council and industry leaders warn of severe repercussions, including mass closures and the rise of unregulated offshore betting. Betfred’s latest financial report already shows significant strain, with just £500,000 in operating profit on nearly £1 billion in revenue, alongside increased costs from wages and national insurance contributions.
The warning from Betfred follows similar concerns from other major operators such as William Hill and Paddy Power, both of which have announced plans to reduce retail presence due to escalating expenses. As the Budget approaches, the gambling sector faces a defining moment that could reshape the UK’s regulatory and commercial landscape.
