Betfred co founder Fred Done warns a UK gambling tax hike could force closure of all betting shops, risking 7,500 jobs & boosting the black market.
Fred Done, the co founder and chairman of Betfred, has issued his starkest warning yet regarding the future of the company’s UK betting shops, stating that the entire retail betting operation could be shut down if the government proceeds with significant increases to the UK gambling tax. Speaking to BBC News, Done described the potential tax rises, with figures as high as 50% floated by think tanks, as the biggest threat his business has faced since its founding in 1967. The closure of Betfred’s network would result in approximately 7,500 job losses.
Done elaborated on the financial tipping point for Betfred’s high street betting shops. “ It [tax] doesn’t even need to go up to 50%. 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,” he warned. He also quantified the impact of smaller increases, stating that even a 5% rise in the UK gambling tax would force the closure of enough shops to cause around 400 Betfred job losses. This aligns with recent warnings from other major UK bookmakers, including the parent companies of Paddy Power, William Hill, Ladbrokes, and Coral, all indicating that substantial tax hikes would lead to widespread closures of retail betting outlets across the country.
A core part of Fred Done’s argument against the gambling tax hike focuses on the inevitable strengthening of the illegal black market. “ Once the [UK] industry is closed down, it’s gone. People will still bet, but they’ll bet offshore with it,” he stated. “ There’s plenty of bookmakers offshore who happen to take the bets, who don’t pay anything to this country.” He referenced the situation in the Netherlands, where a recent significant increase in the gambling tax rate reportedly led to a sharp decline in the channelisation rate, with less than half of Gross Gaming Revenue now captured by the licensed market. The Betting & Gaming Council (BGC) has consistently echoed these concerns about the black market risk associated with punitive UK gambling regulation.
Fred Done’s threat to close all Betfred UK betting shops is a dramatic escalation in the industry’s lobbying efforts against potential UK gambling tax hikes. While such statements must be viewed partly as negotiation tactics, the underlying economic pressures on high street betting shops are real. Rising operational costs, competition from online, and previous regulatory changes have already led to thousands of shop closures. A significant increase in the UK gambling tax would undoubtedly accelerate this trend, making many more retail betting locations commercially unviable. The figure of 7,500 Betfred job losses represents a substantial economic impact, particularly in communities where these shops are significant local employers, lending credibility to the severity of the warning.
The argument regarding the black market risk is central to the industry’s case and finds support in data from jurisdictions like the Netherlands. Increasing the cost burden on licensed UK bookmakers through a gambling tax hike inevitably makes the unregulated black market, which pays no tax and offers no player protection, comparatively more attractive to price sensitive UK punters. While some campaigners dismiss the scale of the black market threat or argue that the potential tax revenue outweighs the job losses, the link between punitive regulation and black market growth is a consistent pattern observed globally. The challenge for the government is balancing fiscal objectives with the need to maintain a viable, regulated retail betting sector that contributes taxes and employment.
Ultimately, the future of Betfred’s UK betting shops and the wider retail betting industry hinges on the government’s final decision regarding the UK gambling tax. Fred Done’s public warning, combined with similar statements from other major operators and the BGC, puts immense pressure on the Chancellor. Dismissing these warnings entirely risks significant economic disruption and could inadvertently achieve the opposite of the intended fiscal goal if UK punters migrate en masse to the untaxed black market. The outcome of this UK gambling regulation debate will be critical for the future shape of the industry.
