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The family-owned betting firm, established in 1967 by brothers Fred and Peter Done, faces what executives are calling an “existential threat” to its retail operations amid speculation that gambling duties could increase substantially in the upcoming Autumn Statement on November 26.
Tax Proposals Threaten Retail Viability
Speaking to the BBC, Done stated that even modest tax increases would devastate the company’s retail estate. The Betfred chairman revealed that 300 of the company’s shops are already operating at a loss, and a 5% tax increase would push an additional 130 locations into the red.
“If it went up to anywhere like 40% or even 35% there is no profit in the business. We would have to close it down. I’m talking job losses. We’re talking probably 7,500.”
Treasury proposals under consideration would raise sports betting duty from 15% to 30% and machine and online gaming duty from 20% to 50%. The changes, supported by former Prime Minister Gordon Brown and over 100 Labour backbenchers, are forecast to generate £3.2 billion annually—funds earmarked for abolishing the two-child benefit cap.
Chancellor Reeves recently told ITV that gambling firms should “pay their fair share of taxes,” following recommendations from the Institute for Public Policy Research (IPPR) suggesting a tax hike as high as 50% could be used “to lift children out of poverty.”
Industry-Wide Concerns
Betfred’s warning follows similar statements from other major UK bookmakers. Evoke, owner of William Hill, announced plans to review 10-15% of its retail shops, potentially closing up to 200 locations if tax increases proceed. Flutter Entertainment confirmed the closure of 57 Paddy Power shops across the UK and Ireland, citing cost pressures and market conditions, with warnings of additional closures if gambling taxes rise.
Entain CEO Stella David, whose company operates Ladbrokes and Coral, called on the government to use evidence-based analysis rather than emotion when considering tax rises, warning that increases would force the company to reassess its retail estate.
Impact on Employment and High Street Presence
Chief Executive Joanne Whittaker told The Sunday Times that the company has written to Chancellor Reeves outlining the implications for Betfred’s betting shops, admitting she may have been “stupid and naive” in thinking licensed betting offices would not be impacted by tax increases.
“The most frightening element is we’re going to lose the whole retail business. We’ve got people in the Treasury who don’t understand our business.”
Whittaker emphasized that tax rises at proposed levels would make the entire retail betting sector financially unviable, potentially eliminating bookmakers from the high street and putting up to 46,000 jobs at risk across the industry.
Financial Context
Despite being Britain’s second-largest taxpayer—with the Done family contributing £273.4 million to the Exchequer in 2025—Betfred has faced challenging financial conditions. The company’s most recent annual results showed nearly £1 billion in revenue but generated an operating profit of just £500,000 after asset writedowns. The firm posted losses of £71 million in 2023 and £35 million in 2024.
The company has continued investing in its high-street estate during the post-COVID period, viewing it as an opportunity to consolidate its position as the UK’s largest independent betting operator with 1,350 retail locations and over 800,000 active online customers.
Long-Term Industry Outlook
Done acknowledged that customer migration to online platforms is inevitable but argued that retail betting shops retain substantial viability without additional tax burdens.
“Slowly it will go online, but we’re talking, without tax increases, we’ve still got probably 20 years of life on the High Street. And you know, the UK High Street is being decimated with closures.”
The chairman warned that closing the retail betting industry would drive customers to offshore operators who “don’t pay anything to this country,” undermining the government’s revenue objectives.
Done stated he believes the odds of the Chancellor reconsidering the tax increases are unfavorable, saying “We’re 10 to one against.”
Racing Industry Implications
British racing’s finances would also face significant impact from retail betting shop closures. Licensed betting offices make media rights and levy payments for bets placed in them, providing crucial funding for the sport. The betting shop estate in Britain has already decreased by a third over the past eight years, falling from 9,977 shops in September 2017 to 6,668 last month.
Betfred sponsored all five British Classics for the first time in 2025, offering a £2 million bonus for any horse achieving the Triple Crown.
Budget Decision Pending
The November 26 budget will determine whether UK high-street bookmakers survive or whether the era of traditional betting shops draws to a close. With Chancellor Reeves under pressure to find £30 billion through tax rises and spending cuts to stabilize public finances amid weak economic growth, the decision on gambling duties will have far-reaching implications for the industry and its workforce.
Whittaker described the average Betfred customer as placing £9 bets and visiting shops for social interaction in a safe, regulated environment.
“People come in for a chat, have a coffee, and enjoy a flutter. We provide a safe, comfortable environment for people who want to bet responsibly.”
Source: BBC
