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https://www.racingpost.com/news/industry/betting-industry/we-will-have-to-walk-away-betfred-boss-warns-firm-will-ditch-sponsorship-of-british-classics-if-taxes-rise-in-the-budget-am5oz8J5eZVW/
We will have to walk away' - Betfred boss warns firm will ditch sponsorship of British Classics if taxes rise in the budget
Betfred founder Fred Done has warned that an increase in machine games duty (MGD) will leave British racing looking for new sponsors for the Classics.
His firm backs the Derby, Oaks, 1,000 Guineas, 2,000 Guineas and St Leger, becoming the first to support all five races in 2024.
But chancellor John Healey is reportedly considering raising MGD in October's budget and Done is among many to point out the damaging effect that would have on the betting industry, on racing and on the wider economy.
"We have a verbal agreement to renew our sponsorship of the British Classic horse races for a further three years – but if October’s budget goes the wrong way on MGD, we will have to walk away from those, too," he wrote in The Sunday Times.
Done expects betting shops to close and had warned on Saturday that tax increases could mean there are none left on the high street by 2030.
Explaining the damaging effect, he wrote: "We have modelled the effects on Betfred: a doubling of MGD to 40 per cent would cause us to close 495 shops – 45 per cent of our estate. This would trigger the loss of 2,475 shop jobs, plus more at our head office in Warrington; £66.8 million in taxes paid by those shops; and £15.8 million in annual funding for horseracing."
Done believes tax rises would also represent an attack on gambling and said: "Any significant increase to MGD would go beyond a fiscal grab. It would be a raid by the new morality police.
"The average bet placed in one of our shops is £10.87. Our customers are not high-rollers or heavy gamblers; they are working people who enjoy a bet and a cup of tea with their friends. After visiting one of our shops, they go on to spend money in neighbouring stores. Every shop we close leaves a hole in its community – I get such emotional letters from former managers.
"That is why it was so upsetting to see betting shops grouped with vape shops and 'rogue operators' in recent government commentary. There’s nothing wrong with having a bet."
Done's words come just a few days after Stella David, chief executive of Ladbrokes and Coral owner Entain, wrote to prime minister Andy Burnham, warning him of the danger of tax rises.
She said that doubling the rate of MGD to 40 per cent would add about £100m to the annual cost of running the company's betting shop business.
David cited modelling commissioned by the Betting and Gaming Council from consultants EY, which estimated that a 40 per cent MGD rate could lead to up to 1,470 betting shop closures and 15,900 job losses, "and ultimately result in a net loss to the exchequer of around £120 million".
A spokesperson for the Jockey Club, which stages four of the five Classics, said: “Betfred are fantastic and passionate supporters of our four Classics. We know that Fred would be heartbroken if their sponsorship of them were to come to an end and we've been having positive conversations around extending our partnership with them.”
Arena Racing Company, which hosts the St Leger at Doncaster, was approached for comment on the threat to sponsorship. The BHA declined to comment.
https://www.racingpost.com/news/industry/betting-industry/we-will-have-to-walk-away-betfred-boss-warns-firm-will-ditch-sponsorship-of-british-classics-if-taxes-rise-in-the-budget-am5oz8J5eZVW/
We will have to walk away' - Betfred boss warns firm will ditch sponsorship of British Classics if taxes rise in the budget
Betfred founder Fred Done has warned that an increase in machine games duty (MGD) will leave British racing looking for new sponsors for the Classics.
His firm backs the Derby, Oaks, 1,000 Guineas, 2,000 Guineas and St Leger, becoming the first to support all five races in 2024.
But chancellor John Healey is reportedly considering raising MGD in October's budget and Done is among many to point out the damaging effect that would have on the betting industry, on racing and on the wider economy.
"We have a verbal agreement to renew our sponsorship of the British Classic horse races for a further three years – but if October’s budget goes the wrong way on MGD, we will have to walk away from those, too," he wrote in The Sunday Times.
Done expects betting shops to close and had warned on Saturday that tax increases could mean there are none left on the high street by 2030.
Explaining the damaging effect, he wrote: "We have modelled the effects on Betfred: a doubling of MGD to 40 per cent would cause us to close 495 shops – 45 per cent of our estate. This would trigger the loss of 2,475 shop jobs, plus more at our head office in Warrington; £66.8 million in taxes paid by those shops; and £15.8 million in annual funding for horseracing."
Done believes tax rises would also represent an attack on gambling and said: "Any significant increase to MGD would go beyond a fiscal grab. It would be a raid by the new morality police.
"The average bet placed in one of our shops is £10.87. Our customers are not high-rollers or heavy gamblers; they are working people who enjoy a bet and a cup of tea with their friends. After visiting one of our shops, they go on to spend money in neighbouring stores. Every shop we close leaves a hole in its community – I get such emotional letters from former managers.
"That is why it was so upsetting to see betting shops grouped with vape shops and 'rogue operators' in recent government commentary. There’s nothing wrong with having a bet."
Done's words come just a few days after Stella David, chief executive of Ladbrokes and Coral owner Entain, wrote to prime minister Andy Burnham, warning him of the danger of tax rises.
She said that doubling the rate of MGD to 40 per cent would add about £100m to the annual cost of running the company's betting shop business.
David cited modelling commissioned by the Betting and Gaming Council from consultants EY, which estimated that a 40 per cent MGD rate could lead to up to 1,470 betting shop closures and 15,900 job losses, "and ultimately result in a net loss to the exchequer of around £120 million".
A spokesperson for the Jockey Club, which stages four of the five Classics, said: “Betfred are fantastic and passionate supporters of our four Classics. We know that Fred would be heartbroken if their sponsorship of them were to come to an end and we've been having positive conversations around extending our partnership with them.”
Arena Racing Company, which hosts the St Leger at Doncaster, was approached for comment on the threat to sponsorship. The BHA declined to comment.
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"The average bet placed in one of our shops is £10.87. Our customers are not high-rollers or heavy gamblers; they are working people who enjoy a bet and a cup of tea with their friends. After visiting one of our shops, they go on to spend money in neighbouring stores. Every shop we close leaves a hole in its community – I get such emotional letters from former managers.
How much is getting pumped into the machines Fred?
Your shops wouldn't be, could not have been viable for two decades without the machines.
Turned high street shops into adult gaming centres and aided those who would previously have been required to sign up at a casino to lose thousands on 'wheels'.
You and Deni365 have made fortunes, but now the game is over.
No doubt you'll invest in alternatives.
How much is getting pumped into the machines Fred?
Your shops wouldn't be, could not have been viable for two decades without the machines.
Turned high street shops into adult gaming centres and aided those who would previously have been required to sign up at a casino to lose thousands on 'wheels'.
You and Deni365 have made fortunes, but now the game is over.
No doubt you'll invest in alternatives.
" I get such emotional letters from former managers."
The same ones playing the machines that the degenerate did his bollix on even though the optics are poor?
The same managers incentivised to entice degenerates to start spinning wheels with free spins Fred?
Wac
The same ones playing the machines that the degenerate did his bollix on even though the optics are poor?
The same managers incentivised to entice degenerates to start spinning wheels with free spins Fred?
Wac
he's made 100's millions from those stinking machines over the last 20+ years.
he was fully aware turning his bookies into a casino was doing long-term harm to the horse racing industry.
yes he's payed tax, but only to a corrupt government who have enabled him and his ilk to do it in the first place.
all that wealth, from other peoples misery, and the JC acting like he's the Messiah
he was fully aware turning his bookies into a casino was doing long-term harm to the horse racing industry.
yes he's payed tax, but only to a corrupt government who have enabled him and his ilk to do it in the first place.
all that wealth, from other peoples misery, and the JC acting like he's the Messiah
0ver ten years ago,maybe fifteen,I walked past a Fred's shop in a high street,a girl stopped me and asked if I would like a leaflet for the machines inside. I asked,what can I win? She replied, oh you cant win any money but you will learn how to play the machines. Hmmm.
The leaflet,coupon, allowed me to scan and play free games on the machines*
I'd like to see a complete ban on the bookies advertising on tv and other media. I'd also like to see the bookies banned for advertising in racecourses unless they accept a bet on an agreed and mandatory minimum stake on a selection / horse.
The bookies cannot and must not be allowed to keep 'milking the cow' like they've done consistently over the last 2 / 3 decades. The present bookies business plans and strategies eg utilising the high street to pedal fobt are not good for horseracing.
The bookies cannot and must not be allowed to keep 'milking the cow' like they've done consistently over the last 2 / 3 decades. The present bookies business plans and strategies eg utilising the high street to pedal fobt are not good for horseracing.
Racing has been kept going by a non-racing product. There isn't enough people betting on racing. Not many are interested. Betting maybe but not racing.
a week after the event CHAMBERLAIN till banging on about 30,000 at the leger,20,000 were local freebies who took advantage of the nice weather
interesting and never thought of it before but SAM TURNER i think on RUK said EPSOM can only squeeze 28,000 paying customers in to the stands on derby day, if all the food,drink outlet etc are subbied out, £ up front to private businesses not much in it for EPSOM if the hill/downs are pact or empty
I've posted several times about issues on this thread - bookies businesses, success and failure, machine use. Those posts were deleted on here, I wonder if this post survives? Though maybe just because it's partly been a trusted reference source the RP....
Posted in other threads just to clarify, before they were 'deleted' somehow.
Quite simple really. John Healey announces no new taxes on gambling and Fred Done etc guarantees every single betting shop will remain open and no reduction in staff numbers until at least 2030. lol
William Hill retail boss warns tax rise could be 'catastrophic' for betting shops - and have 'huge' impact for racing
William Hill: could close up to 200 betting shops
William Hill have closed 270 betting shops in recent months
The man in charge of William Hill's betting shop estate has warned that proposals to raise taxes on gaming machines could be "catastrophic" for the sector and that the consequences would be "extremely bleak" for horse and greyhound racing.
Leo Walker, William Hill's managing director for retail, was speaking as speculation increases that chancellor of the exchequer John Healey is considering increasing the rate of machine games duty (MGD) in next month's budget.
Industry modelling has estimated that a doubling of the MGD rate to 40 per cent, as proposed by the Social Market Foundation think tank, could lead to thousands of betting shop closures and job losses, along with tens of millions of pounds wiped from racing's finances through lost levy and media rights payments.
William Hill have already closed 270 betting shops in two phases since the last budget, in which the government raised remote gambling duties.
"That was us right-sizing the estate, it was an initiative we needed to do," Walker said. "MGD and a significant increase would be catastrophic if it hits the levels the Social Market Foundation has proposed.
"We're very proud of our presence on the high street. We're a highly regulated sector and I think we provide fantastic communities on the high street and again I've seen the value of that whenever I go out on shop visits, which is regularly. I've been one of those colleagues on the front line and remember my regulars from back then very fondly.
"I feel it could be extremely damaging and I can see the industry really rallying together to lobby hard on ensuring that the government and the treasury know the damage and impact that this could have to our high streets."
Walker said William Hill's betting shop estate now numbers about 1,050 shops, along with a presence on a number of racecourses.
He added: "We've been big supporters of horseracing. William Hill has a very strong affiliation to horseracing with the races it sponsors.
"We know that any increase in MGD, it's not just catastrophic for the industry. The knock on effect to horseracing and greyhound racing would be huge and it's great to see the likes of Arena Racing and RMG coming out and supporting us in our efforts to showcase what impact that could have to industries which I personally love.
"Horseracing and greyhound racing was how I got into this industry. I think it could be extremely bleak for those two if there is a significant increase in MGD."
Walker's comments came as The Sun reported that Conservative Party leader Kemi Badenoch had criticised the government for hitting operators with increased taxes.
The newspaper quoted Badenoch as warning that higher duties could drive punters "into illegal betting", adding: "The good companies, the ones that follow the rules, that pay their taxes, will go out of business."
https://www.racingpost.com/news/industry/racing-industry/william-hill-retail-boss-warns-tax-rise-could-be-catastrophic-for-betting-shops-and-have-huge-impact-for-racing-abHg21c3Yw3P/
William Hill: could close up to 200 betting shops
William Hill have closed 270 betting shops in recent months
The man in charge of William Hill's betting shop estate has warned that proposals to raise taxes on gaming machines could be "catastrophic" for the sector and that the consequences would be "extremely bleak" for horse and greyhound racing.
Leo Walker, William Hill's managing director for retail, was speaking as speculation increases that chancellor of the exchequer John Healey is considering increasing the rate of machine games duty (MGD) in next month's budget.
Industry modelling has estimated that a doubling of the MGD rate to 40 per cent, as proposed by the Social Market Foundation think tank, could lead to thousands of betting shop closures and job losses, along with tens of millions of pounds wiped from racing's finances through lost levy and media rights payments.
William Hill have already closed 270 betting shops in two phases since the last budget, in which the government raised remote gambling duties.
"That was us right-sizing the estate, it was an initiative we needed to do," Walker said. "MGD and a significant increase would be catastrophic if it hits the levels the Social Market Foundation has proposed.
"We're very proud of our presence on the high street. We're a highly regulated sector and I think we provide fantastic communities on the high street and again I've seen the value of that whenever I go out on shop visits, which is regularly. I've been one of those colleagues on the front line and remember my regulars from back then very fondly.
"I feel it could be extremely damaging and I can see the industry really rallying together to lobby hard on ensuring that the government and the treasury know the damage and impact that this could have to our high streets."
Walker said William Hill's betting shop estate now numbers about 1,050 shops, along with a presence on a number of racecourses.
He added: "We've been big supporters of horseracing. William Hill has a very strong affiliation to horseracing with the races it sponsors.
"We know that any increase in MGD, it's not just catastrophic for the industry. The knock on effect to horseracing and greyhound racing would be huge and it's great to see the likes of Arena Racing and RMG coming out and supporting us in our efforts to showcase what impact that could have to industries which I personally love.
"Horseracing and greyhound racing was how I got into this industry. I think it could be extremely bleak for those two if there is a significant increase in MGD."
Walker's comments came as The Sun reported that Conservative Party leader Kemi Badenoch had criticised the government for hitting operators with increased taxes.
The newspaper quoted Badenoch as warning that higher duties could drive punters "into illegal betting", adding: "The good companies, the ones that follow the rules, that pay their taxes, will go out of business."
https://www.racingpost.com/news/industry/racing-industry/william-hill-retail-boss-warns-tax-rise-could-be-catastrophic-for-betting-shops-and-have-huge-impact-for-racing-abHg21c3Yw3P/
The man in charge of William Hill's betting shop estate has warned that proposals to raise taxes on gaming machines could be "catastrophic" for the sector and that the consequences would be "extremely bleak" for horse and greyhound racing.
He added: "We've been big supporters of horseracing. William Hill has a very strong affiliation to horseracing with the races it sponsors.
Poles apart dude. The machines have brought misery to a sector that weren't interested in Horse racing. You would have decreased your estate decades ago (if indeed the growth on the back of machine installation hadn't been allowed) if it hadn't been for the proliferation of machines that sent the decent punter elsewhere.Such machines belong in casinos where membership should be required.
'You' and your lot gave up on Horseracing when the writing on the wall became clear inasmuch that you knew the generations to follow had no interest on waitning 4 hours for their 'yankee' to unfold.
WAC
He added: "We've been big supporters of horseracing. William Hill has a very strong affiliation to horseracing with the races it sponsors.
Poles apart dude. The machines have brought misery to a sector that weren't interested in Horse racing. You would have decreased your estate decades ago (if indeed the growth on the back of machine installation hadn't been allowed) if it hadn't been for the proliferation of machines that sent the decent punter elsewhere.Such machines belong in casinos where membership should be required.
'You' and your lot gave up on Horseracing when the writing on the wall became clear inasmuch that you knew the generations to follow had no interest on waitning 4 hours for their 'yankee' to unfold.
WAC
THE INSULT TO AIRHEADS, tory minister HELEN WHATLEY on MSM today saying tory,s will ban benefit claiments from spending benefits on alcohol,gambling and ciggs, given the choice between this and a tax increase , bookmakers will be begging for the tax increase 
Paddy Power founder accuses Betfred billionaire of ‘scaremongering’ over tax rises
Stewart Kenny hits back at warnings over UK job losses, saying he used ‘the same script’ when he was in the industry
Stewart Kenny abruptly stepped down from the board of Paddy Power in 2016 and has become a vocal critic of his former industry © Carlotta Cardana/Bloomberg
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Paddy Power’s former boss has accused the Betfred founder Fred Done of “scaremongering” over the potential damage of increasing taxes on the gambling sector, saying he “used the same script” when he was still in the industry.
Stewart Kenny, who co-founded Paddy Power in 1988, delivered the riposte after Betfred billionaire Done warned last week that high street bookies would be “dead” by 2030 if the Treasury pressed ahead with proposals to double machine gaming duty to 40 per cent.
Done, the UK’s biggest taxpayer, told the FT that Betfred would have to shut 495 bookmakers at the loss of 2,575 jobs and £67mn in tax from those shops if the rise in duty went ahead.
But Kenny said Done’s claims were “familiar scaremongering”.
“When I represented bookmakers, I used the same script whenever tax was about to rise,” Kenny said in a letter to the FT. “We also heard it before curbs were introduced on fixed-odds betting terminals; the predicted devastation did not follow.”
Kenny abruptly stepped down in 2016 from the board of Paddy Power, which is now part of Flutter Entertainment, and has become a vocal critic of his former industry.
The gambling sector has been accused before of scaremongering, including by Meg Hillier, chair of the Treasury select committee, in relation to industry opposition to an advertising clampdown.
However, Done told the FT that the industry was not crying wolf and that the company’s analysis had shown that another increase in taxes on top of higher wage bills would make shops not “worth operating”.
Betfred has already announced 132 betting shop closures after an increase in taxes on online gaming. The company said it paid £242mn in tax in 2025. Its last available accounts show that it made £1.45bn of revenues and £209mn of operating profits in the 18 months to March 2025.
Done and his brother Peter, who runs the family’s Peninsula business, together paid £400mn in taxes last year, making them Britain’s biggest individual taxpayers according to the Sunday Times Tax List. Done said last week that he had “never felt so gloomy” about the country’s future.
Betfred founder Fred Done, pictured, and his brother Peter, paid £400mn in taxes last year © Anna Gordon/FT
Done said the threat of higher taxes had already prompted him to end Betfred’s decade-long sponsorship of rugby league’s Super League and delay signing an extension of its support for horseracing. Slot machines accounted for half of Betfred shops’ profits and the risk of higher taxes would make the sponsorship “unaffordable”, he said.
But Kenny has argued that machines should be taxed higher: “A bet on a horse or football match is much less harmful than a machine designed for rapid, repetitive play, with near misses built in. High-harm machines should bear tax proportionate to that harm, discouraging operators from steering customers towards their most addictive products.”
“What is needed is intelligent, not blanket, taxation of betting to protect racing and other lower-harm betting products, while taxing online slots and other gaming machines more heavily. Scaremongering is no substitute for evidence.”
Others in the gambling industry argue that trying to tax only machines or online betting is misguided.
“Operators manage their retail and online operations through a single profit and loss account — meaning tax and regulator pressure on one part of the business inevitably affects decisions across the wider operations,” said the Betting and Gaming Council.
“When costs are driven up in one area, the consequences are felt elsewhere with jobs, investment and high street shops all suffering.”
Stewart Kenny hits back at warnings over UK job losses, saying he used ‘the same script’ when he was in the industry
Stewart Kenny abruptly stepped down from the board of Paddy Power in 2016 and has become a vocal critic of his former industry © Carlotta Cardana/Bloomberg
Share
Paddy Power’s former boss has accused the Betfred founder Fred Done of “scaremongering” over the potential damage of increasing taxes on the gambling sector, saying he “used the same script” when he was still in the industry.
Stewart Kenny, who co-founded Paddy Power in 1988, delivered the riposte after Betfred billionaire Done warned last week that high street bookies would be “dead” by 2030 if the Treasury pressed ahead with proposals to double machine gaming duty to 40 per cent.
Done, the UK’s biggest taxpayer, told the FT that Betfred would have to shut 495 bookmakers at the loss of 2,575 jobs and £67mn in tax from those shops if the rise in duty went ahead.
But Kenny said Done’s claims were “familiar scaremongering”.
“When I represented bookmakers, I used the same script whenever tax was about to rise,” Kenny said in a letter to the FT. “We also heard it before curbs were introduced on fixed-odds betting terminals; the predicted devastation did not follow.”
Kenny abruptly stepped down in 2016 from the board of Paddy Power, which is now part of Flutter Entertainment, and has become a vocal critic of his former industry.
The gambling sector has been accused before of scaremongering, including by Meg Hillier, chair of the Treasury select committee, in relation to industry opposition to an advertising clampdown.
However, Done told the FT that the industry was not crying wolf and that the company’s analysis had shown that another increase in taxes on top of higher wage bills would make shops not “worth operating”.
Betfred has already announced 132 betting shop closures after an increase in taxes on online gaming. The company said it paid £242mn in tax in 2025. Its last available accounts show that it made £1.45bn of revenues and £209mn of operating profits in the 18 months to March 2025.
Done and his brother Peter, who runs the family’s Peninsula business, together paid £400mn in taxes last year, making them Britain’s biggest individual taxpayers according to the Sunday Times Tax List. Done said last week that he had “never felt so gloomy” about the country’s future.
Betfred founder Fred Done, pictured, and his brother Peter, paid £400mn in taxes last year © Anna Gordon/FT
Done said the threat of higher taxes had already prompted him to end Betfred’s decade-long sponsorship of rugby league’s Super League and delay signing an extension of its support for horseracing. Slot machines accounted for half of Betfred shops’ profits and the risk of higher taxes would make the sponsorship “unaffordable”, he said.
But Kenny has argued that machines should be taxed higher: “A bet on a horse or football match is much less harmful than a machine designed for rapid, repetitive play, with near misses built in. High-harm machines should bear tax proportionate to that harm, discouraging operators from steering customers towards their most addictive products.”
“What is needed is intelligent, not blanket, taxation of betting to protect racing and other lower-harm betting products, while taxing online slots and other gaming machines more heavily. Scaremongering is no substitute for evidence.”
Others in the gambling industry argue that trying to tax only machines or online betting is misguided.
“Operators manage their retail and online operations through a single profit and loss account — meaning tax and regulator pressure on one part of the business inevitably affects decisions across the wider operations,” said the Betting and Gaming Council.
“When costs are driven up in one area, the consequences are felt elsewhere with jobs, investment and high street shops all suffering.”
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