Published on: October 20, 2025, 05:15h.
Updated on: October 20, 2025, 05:15h.
- Betfred warns of shutdown due to potential UK gambling tax increase.
- Reeves is contemplating boosting betting taxes to stabilize public finances.
- The industry cautions about potential job cuts and downturn in retail betting.
The UK betting operator Betfred has stated that it may have to shut down all 1,287 of its retail betting shops if the UK government enforces a tax increase on sports gambling and slot machines.
Chancellor Rachel Reeves may propose a £3.2 billion increase in taxes to address a £30 billion public finance shortfall in the upcoming budget. This follows recommendations from the Institute for Public Policy Research (IPPR), closely associated with the ruling Labour Party.
Gordon Brown, a former Labour Prime Minister, supports the IPPR’s proposals, asserting that they could alleviate child poverty across the UK.
Reeves has indicated that there is a “justification” for gambling companies to contribute more in taxes, stating, “We will ensure that happens.”
Media Campaign
The potential tax increase has escalated lobbying efforts from the gambling sector and intensified their engagement with the media.
During a BBC interview, Fred Done, the 82-year-old founder and chairman of Betfred, expressed that the recommended tax hike—from a 15% sports betting levy to a 30% rate, and an increase from 20% to 50% on slots—would threaten the survival of his retail betting outlets.
“If the overall tax rate reached 40% or even 35%, there would be no profitability left in the business, and we would have to shut it down. This would mean job losses—potentially affecting around 7,500 individuals,” he told the BBC.
Done characterized such an increase as the “most significant threat” to the industry since he began Betfred alongside his brother, Peter Done, in a single Manchester betting shop in 1967.
Betfred’s CEO, Joanne Whittaker, responded to the situation by stating in The Times that their stance is not merely “scaremongering” or “alarmist.”
“The most alarming aspect is that we risk losing the entire retail betting business,” she added.
William Hill has signaled that it might need to close 200 betting shops, affecting 1,500 jobs, while Entain’s Ladbrokes Coral has also indicated it may follow suit.
A Familiar Scenario?
The previous significant threat faced by the UK’s retail betting market came when the government reduced the maximum stakes on fixed-odds betting terminals (FOBTs) from £100 down to £2. At the time, the industry projected mass closures and substantial job losses.
This was not mere fearmongering; their concerns were legitimate due to the potential loss of a crucial revenue stream. However, hindsight reveals that the bookies might have been inclined towards a worst-case scenario.
Before those regulatory changes, William Hill anticipated up to 900 closures, which represented about 40% of its retail locations. Ultimately, the actual number of closures across the industry was around a quarter, influenced not only by regulatory changes but other unforeseen factors, notably the impact of the pandemic.