Betfred has issued a stark warning that Chancellor Rachel Reeves’ proposed gambling tax hikes could devastate its U.K. retail operations, potentially forcing the closure of every betting shop and resulting in thousands of job losses.
Co-founder and Chairman Fred Done told the BBC that the bookmaker’s entire network of 1,287 shops could shut down if the new measures are implemented, describing the plan as the “biggest threat I’ve ever known since I’ve been in the industry.”
Done added that the closures could impact around 7,500 employees, stressing that the company’s profit margins are already under heavy strain.
“On a (scale of) one to 10, it’s a 10. All the alarm bells are ringing there. I believe by 2028 we will not have one single shop,” the 82-year-old British billionaire businessman said.
Betfred Chief Executive Officer Joanne Whittaker echoed Done’s concern, telling The Sunday Times that the company is preparing for a “worst-case scenario” ahead of the Autumn Statement on Nov. 26.
“This is not scaremongering. It’s a business reality. The most frightening element is we’re going to lose the whole retail business,” Whittaker said.
Proposed tax increase in the U.K.
The HM Treasury is reportedly evaluating several options for the upcoming budget.
One proposal would double the general betting duty on sports wagers from 15 to 30 percent, increase the machine games duty on slots from 20 to 50 percent, and raise the remote gaming duty (RGD) from 21 to 50 percent for online gaming.
A softer alternative under consideration would unify all gambling taxes at the current RGD rate of 21 percent. However, industry executives warn that even this would reshape the market and erode operator margins.
Both Done and Whittaker cautioned that excessive tax increases could backfire, pushing bettors toward unregulated platforms and ultimately reducing the government’s overall revenue.
“People will still bet, but they’ll bet offshore with bookmakers who don’t pay anything to this country,” Done emphasized.
Betfred, U.K. betting sector face mounting pressure
Betfred, which was founded in 1967, runs more than 1,200 shops across the country in addition to its expanding online betting business.
Done warned that raising the taxes to between 35 percent and 40 percent would eliminate profits altogether. He noted that around 300 Betfred shops are already operating at a loss and that even a modest five percent tax increase could push that number above 400. Despite facing consecutive annual losses, Betfred remains one of the country’s top taxpayers, contributing £273.4 million in 2025.
Betfred’s warning aligns with growing concerns across the U.K. betting industry. Evoke, the parent company of William Hill, recently said it could close up to 200 outlets if new tax measures are enacted. Flutter Entertainment’s Paddy Power has already confirmed the closure of 57 shops in the U.K. and Ireland, while Entain CEO Stella David has stated that higher duties could lead to widespread estate reductions and job losses.
As the Treasury finalizes its Autumn Statement, the proposed tax changes have sparked anxiety among operators and employees. Industry leaders warn that an aggressive hike could dismantle Britain’s retail betting sector.
Published: Oct 20, 2025 10:30 pm