Betfred says ”whole retail betting business” on the line amid fears of UK gambling tax hike

The company said it is preparing for a “worst case scenario” ahead of the Autumn Budget.

UK.- Betfred is the latest major British high-street betting operator to issue a warning over possible betting shop closures. It says that a possible rise in gambling tax in chancellor Rachel Reeves’ Autumn Budget next month could lead it to dismantle its high-street presence. 

Betfred chief executive Joanne Whittaker told The Sunday Times the company is preparing for a “worst-case scenario”. “This is not scaremongering. It’s a business reality,” she said. “The most frightening element is we’re going to lose the whole retail business.”

She also warned that a tax rise may backfire on the government, possibly leading to less tax revenue as customers seek unlicensed operators. “If these rates go through, the reality is we won’t have a business left to tax,” she said.

The UK government has not confirmed plans for any rise in gambling tax, but Reeves has hinted that she sees a case for betting operators to pay more. Over 100 Labour MPs and the Liberal Democrats have called for Remote Gaming Duty to be raised from 21 per cent to 50 per cent, while there have also been proposals to raise machine games duty to a similar level. 

Earlier in the year, the Treasury proposed combining three current taxes to create a unified Remote Betting and Gaming Duty, which many believe would mean a steep rise in the tax on sports betting, bringing it in line with online casino gaming.

While the loudest call within the Labour Party has been to raise the tax for remote gaming, not retail venues, the major operators are eyeing their retail portfolios as the place where they can cut costs. Entain has warned that it might have to close Ladbrokes and Coral betting shops if gambling tax rises, while Evoke is considering closing William Hill venues, and Flutter has already announced the closure of 47 Paddy Power betting shops regardless of whether any tax rise is announced.

Betfred is the third biggest UK betting operator after Entain and Evoke in terms of the number of betting shops operated. It has 1,287 shops, employing 7,500 people, according to The Guardian. Whittaker noted that the company has continued to invest in retail in spite of losses of £71m in 2023 and £35m in 2024. Together the company’s owners Fred and Peter Done were ranked as the second biggest UK taxpayer last year, contributing £273.4m.

Whittaker said the UK Treasury failed to understand the importance of retail betting in local communities: “We’ve got people in the Treasury who don’t understand our business,” she said. “We’re not the scourge of society.” 

She added that the average bet in Betfred shops was just £9 and that many customers visit for social interaction and entertainment.