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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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On a jolly!
https://www.youtube.com/shorts/CSM-8C01j7w |
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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. |
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" 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 |
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no betting shops 2030 ?
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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 |