Betfred warns of mass shop closures as Treasury plans tax increase on gambling

Betfred, one of the United Kingdom’s largest betting shop operators, has issued a stark warning that it could shutter its entire estate of 1,300 shops if the Treasury pushes forward with proposed increases to gambling taxes in the forthcoming budget. The move threatens close to 7,000 jobs across the country and could mark the demise of high street betting as it is known today.

Chief executive Joanne Whittaker highlighted the gravity of the situation, making it clear this is not an attempt at scaremongering but a genuine assessment of risk. Under the proposed budget, gambling duties on sports betting could double from 15 per cent to 30 per cent, while taxes on machine and online slots might more than double, rising from 20 per cent to 50 per cent. The changes, backed by former prime minister Gordon Brown and over 100 Labour backbenchers, are aimed at raising £3.2 billion, potentially funding the abolition of the two-child benefit cap.

Betfred, owned by Fred and Peter Done, points to internal analysis and recent international experiences, arguing that higher taxes risk unintended consequences. Whittaker’s correspondence with Rachel Reeves, the Chancellor, and Lisa Nandy, Culture Secretary, claims that the changes would not only reduce tax revenue, but also accelerate the migration to the unregulated black market for gambling. According to Yield Sec, illegal betting websites accounted for over 70 per cent of Europe’s online casino and betting wagers last year, a statistic raising serious concerns about customer protection and responsible gambling.

The Done family is Britain’s second-largest taxpayer, contributing £273.4 million, yet Whittaker claims that few in government fully understand the realities facing the betting industry. She maintains that the average bet in Betfred shops sits at just £9, with many customers treating the shops as a community hub rather than high-stakes venues. The company has also invested significantly in player protection and affordability mechanisms, emphasising that regulated bookmakers offer much greater safeguards than black-market operations.

High street gambling has faced mounting scrutiny, with studies showing that up to 20 per cent of the population is harmed directly or indirectly by gambling. Recent Gambling Commission data indicates that while 2.7 per cent of adults are at risk of problem gambling, only 0.4 per cent qualify as problem gamblers. Whittaker recognises these societal concerns but defends her industry, stating that a total clampdown will merely drive customers to less reputable channels with little protection.

Betfred is not alone in sounding the alarm. William Hill owner Evoke is preparing to close up to 200 shops, while Paddy Power and Entain, parent of Ladbrokes and Coral, are also signalling potential closures. With over 46,000 jobs riding on the fate of high street betting shops nationwide, the industry awaits the budget with trepidation, calling on policymakers to consider the far-reaching consequences of a hasty tax grab.