Betfred Warns of Shop Closures, 7,000 Jobs at Risk If Tax Passes

URGENT UPDATE: Betfred, one of the UK’s major bookmakers, has issued a dire warning about the future of its nearly 1,300 betting shops. The company is at serious risk of closing these locations if a proposed increase in gambling tax is enacted. This move could lead to the loss of approximately 7,000 jobs across the country.

Chairman and co-founder Fred Done described the potential tax hike as the “biggest threat” the gambling industry has ever faced. His concerns are echoed by competitors, highlighting a looming crisis for the sector. The proposed tax increase, suggested by former Prime Minister Gordon Brown and backed by Chancellor Rachel Reeves, aims to address child poverty but has sparked fierce backlash.

The Betting and Gaming Council has labeled the tax proposal “economically reckless,” warning that it could drive gamblers to the black market. Done noted that many of his shops are already operating at a loss, stating, “an increase in tax would just make that amount increase.”

Despite reporting a profit of £1 billion in their latest annual report, Betfred revealed that half of that sum was consumed by operational costs, raising questions about the sustainability of its business model under increased taxation.

Industry experts predict dire consequences if the tax is implemented. The Institute for Public Policy Research (IPPR) estimates that a near 50% increase in gambling tax could generate around £3.2 billion for public finances, but at what cost to local economies and employment?

Rival firms are also sounding alarms. Evoke, owner of William Hill, warned that up to 200 shops could close, while Paddy Power has already announced plans to shut down over 50 locations in the UK and Ireland, jeopardizing around 250 jobs. The betting company Entain has similarly indicated it may close shops if the tax is approved.

Looking ahead, the impending Autumn Budget has become a focal point of concern as Chancellor Reeves faces pressure to raise £50 billion for public finances. This has led to heightened scrutiny regarding the proposed gambling tax increase and its implications.

“We know that most of the profits made by gambling companies come from a very small number of gamblers, many of whom are at risk of serious harm,” stated Professor Ashwin Kumar, Director of Research and Policy at the IPPR. “So we think that the duties should be higher, just like tobacco and alcohol.”

Charity organization GambleAware has also called for “further regulation” to protect vulnerable populations, particularly children, from the potential harms of gambling.

As discussions around the tax continue, the future of the UK gambling industry hangs in the balance. Stakeholders across the sector are watching closely to see how these developments unfold and what measures will ultimately be adopted in the upcoming budget.

Stay tuned for more updates as this situation develops.