High street bookmaker Betfred has warned it could close all 1,300 of its UK shops if Chancellor Rachel Reeves goes ahead with plans to raise gambling taxes in next month’s Budget.
The Warrington-based company said any rise could make its retail business “financially unviable”, putting more than 7,500 jobs at risk.
Chair and founder Fred Done said the proposed increase would “wipe out profits” across the group, adding: “If it went up to anywhere like 40 per cent or even 35 per cent there is no profit in the business. We would have to close it down.”
About 330 of Betfred’s shops are already loss-making, and the company fears any further tax burden could tip the rest into the red.
Political pressure for higher levies
Reeves has indicated she is considering higher gambling levies, saying there is “a case for gambling firms paying more.” Her comments followed calls from former prime minister Gordon Brown, who urged the government to use new gambling taxes to help tackle child poverty – potentially raising £3.2 billion a year.
In a letter to Reeves and culture secretary Lisa Nandy, Betfred’s chief executive Joanne Whittaker argued that higher taxes would have “the opposite of their intended effect,” warning they would reduce Treasury income and fuel black market gambling.
Whittaker has asked to meet Reeves “at the earliest opportunity” to discuss the issue.
Industry fears widespread impact
The gambling industry employs around 46,000 people across nearly 6,000 betting shops nationwide. Betfred’s letter claimed that the tax proposals being considered by think-tanks such as IPPR would “render the entire retail betting sector financially unviable.”
Rival operators including Flutter, Entain, Evoke and Rank Group have also voiced concern about possible tax hikes, warning they would devastate Britain’s betting sector.
Shares in gambling firms have already fallen following reports in August and October that the Treasury was reviewing gambling duty as part of efforts to plug a £20–30 billion fiscal gap.
