Fred Done, the founder, believes 7,500 workers could lose jobs when higher duties destroy betting operations.

Main Points

• Betfred founder warns that tax increases might shut all 1,287 UK betting shops.
• Rachel Reeves, the Chancellor, reported that casinos should pay their due tax.
• The Betting and Gaming Council warned before that higher duties might increase black-market betting.

Fred Done Calls Proposed Tax Hike the ‘Biggest Threat in 50 Years’

Fred Done, Betfred co-founder and Chairman, told everyone that 1,287 UK betting shops might close if Rachel Reeves increases gambling taxes. Done explained to the BBC that closures would cause 7,500 job losses and called tax rises the “biggest threat” in five decades. Profit margins face pressure already, and tax rate increases might destroy retail operations completely.

Rachel Reeves stated recently that gambling firms paying more makes sense for the country. Gordon Brown, former Prime Minister, calculated that higher sector taxes could generate £3.2bn ($4.29bn) yearly for social programmes. Betfred started in 1967 and runs over 1,400 betting shops in the UK, plus a growing online betting platform.

UK Betting Firms Warn of Losses Amid Potential Tax Hikes

The company pays 15% general betting duty on sports wagers, 20% on gaming machines and 21% on online casino stakes. Done calculated that raising rates to 35% or 40% would eliminate all business profit. 300 Betfred shops lose money now, and a 5% tax increase might push over 400 shops into losses. Players will move to unlicensed offshore operators if duties rise too much. Done explained that people continue betting but choose offshore bookmakers who pay nothing to this country.

Other gambling companies issued similar warnings about potential closures and job losses. Evoke, William Hill’s owner, might shut 200 outlets when new tax measures arrive. Paddy Power closed 57 shops throughout the UK and Ireland because costs increased and markets became difficult. Betfred hired Aidan Barry as Trading Director in August to improve retail and online trading operations. HM Treasury spokesperson refused to discuss the speculation about tax changes.