Betfred says gambling tax rise in budget will force it to shut all its UK shops | Gambling

Betfred has said it will close all 1,287 high street betting shops if Rachel Reeves increases taxes on the gambling industry in next month’s budget.

The company’s threat comes amid speculation that the chancellor is considering a tax increase of up to £3.2bn on sports betting to help plug a potential £30bn gap in the public finances.

Betfred said such a tax increase would ultimately lead to the closure of all its stores and put 7,500 jobs at risk.

Billionaire chairman Fred Done, who founded Betfred with his brother in 1967, told the BBC: “If [the tax rate] Even if it goes up to 40 percent or even 35 percent, there is no profit. We would have to close. I’m talking about job losses. “We’re probably talking about 7,500 people.”

Joanne Whittaker, CEO of Betfred he told the Sunday Times: “The scariest element is that we’re going to lose the entire retail business. I’m not scaring… I’m not an alarmist.”

The gambling industry is stepping up lobbying efforts amid intense speculation that Reeves could raise taxes on sports betting companies to 30% from the current 15% and taxes on online slots from 20% to 50%.

Former prime minister Gordon Brown pressed for changes. The Institute for Public Policy Research think tank, which has close links to Labour, estimates such an increase could raise £3.2bn.

Brown argued the extra income could be used to alleviate child poverty across the UK and noted that the £11.5bn betting and gaming industry, excluding lotteries, only pays out. £2.5bn tax last year. “By taxing it correctly, up to £3bn of extra income could be generated,” he said.

Last week Betfred rival William Hill said it could close up to 200 betting shops and up to 1,500 jobs could potentially be affected. Stella David, chief executive of Entain, the FTSE 100 owner of Ladbrokes and Coral, also said higher gambling taxes could lead to store closures and investment being diverted to other countries.

Responding to the threat of closure from Betfred bosses, a Treasury spokesman said: “We do not comment on speculation about future changes to tax policy.”

The spokesman added: “We are consulting on bringing online betting into line with other forms of online gambling to reduce red tape. This is not about increasing or decreasing tax rates and we welcome all views.”

Betfred said in its latest earnings report that it made an operating profit of £500,000 on revenue of £900,000 in 2023, following a series of write-downs on its assets. The company has not yet released its earnings report for 2024. Fined £3.25 million by Gambling Commission due to failures in social responsibility and anti-money laundering.