Fred Done "Disappearing"

Betfred have become the latest major bookmaker to warn of significant closures of betting shops if chancellor of the exchequer Rachel Reeves increases taxes on gambling companies in next month's UK budget.

Fred Done, the bookmaker's co-founder and chairman, told the BBC that all 1,272 Betfred shops could disappear from the high street, putting 7,500 jobs at risk in the process.

Last week, Evoke, the parent company of William Hill, was reported to be preparing to close approximately a tenth of its betting shops in the event of tax rises, while Flutter Entertainment announced this week that Paddy Power are closing 57 shops across UK and Ireland – the closures are not directly linked to tax – potentially impacting nearly 250 jobs. The gambling giant warned more could follow if gambling taxes went up.

What have Betfred said?
Done, whose family was the second-highest tax payer in Britain contributing £273.4 million according to the 2025 The Sunday Times Tax List, was stark in his assessment of the impact the tax would have when speaking to the BBC.

"I think this is the biggest threat I have known since I've been in the industry," he said. "On a 1-10 scale it's a ten, all the alarm bells are ringing here."

The reason for the heightened concern is the margins on licensed betting offices (LBOs). Done said 300 of his shops are "currently losing money" and that "if the tax went up to even 35 per cent there is no profit in the business . . . we would have to close it down".

Betfred: sponsor the Classics in Britain
Betfred: sponsor the Classics in Britain
Credit: John Grossick Racing
Speaking to The Sunday Times, Joanne Whittaker, Betfred's chief executive, said she had written to Reeves spelling out what would happen to Betfred's betting shops in the event of tax rises, adding that she had potentially been "stupid and naive" in thinking LBOs would not be impacted by increased to tax. "We've got people in the Treasury who don't understand our business," she added.

Fred Done - racing's Classic backer
For the first time this year, all five Classics in Britain were sponsored by a single company – Betfred. The bookmaker even offered a £2m bonus should any horse win the Triple Crown – the 2,000 Guineas, Derby and St Leger.

However, a cut to discretionary spend by gambling firms on the likes of sponsorship has been cited by British racing as a potential consequence of tax rises, alongside changes such as worse odds and fewer promotions for punters, as companies seek to maintain their margins.

British racing's finances also benefits significantly from LBOs, which make media rights and levy payments for bets taken in them. The betting shop estate in Britain has already decreased by a third in the last eight years, dropped in 6,668 last month from 9,977 in September 2017.

What have other bookmakers said?
Entain, the owner of Ladbrokes and Coral, issued a trading update this week and its chief executive Stella David called on the government to use maths rather than emotion when considering tax rises.

David also warned that tax rises would result in the company assessing its LBOs, a move that would impact racing as 60 per cent of the bookmaker's contribution to the levy comes from its shops.

When announcing the closure of 57 Paddy Power shops on Wednesday, a Flutter spokesperson said: "We are continually reviewing our high street estate, but it remains a key part of our offer to customers.

"While today’s closures are not directly related to the uncertainty surrounding the budget, a higher gambling tax could have a significant impact on jobs and investment across the industry."

What has the chancellor said about tax?
Rachel Reeves is widely expected to raise taxes in the budget next month to fill a hole in the government's finances estimated to be in the region of £20 billion.

Last year, the chancellor announced tax rises amounting to £40bn, which included an increase in the National Insurance rate paid by employers.

When asked about tax rises for gambling companies at the Labour Party conference last month, Reeves told ITV News: "I do think there is a case for gambling firms paying more . . . they should pay their fair share of taxes and we will make sure that happens."

British racing has been lobbying government to not raise the tax bookmakers pay on general betting duty from 15 per cent due to the potential knock-on effects to the sport's finances. On September 10, racing voluntarily held no fixtures to highlight its concerns for its future.

Financial modelling commissioned by the BHA has estimated British racing would lose out on £66m a year if betting duties were harmonised at 21 per cent, the rate currently levied on online casino games and slots, with this increasing to £160m a year if the rates reached 40 per cent.