The UK bookmaker Betfred has issued a dramatic warning that it could shut all 1,287 of its high-street betting shops if the government proceeds with a planned increase in the gambling tax. The threat comes amid speculation that Chancellor Rachel Reeves may raise the gambling tax in next month’s Budget in an effort to plug a potential £30 billion hole in the public finances.
The proposed tax changes under consideration would potentially double or more the current duty on sports betting – rising from 15 % up to around 30 % – and increase the tax on online slot machines from 20 % to as much as 50 %. Former Prime Minister Gordon Brown and the think-tank Institute for Public Policy Research (IPPR) estimate that such hikes could raise up to £3.2 billion annually.
Betfred’s chairman, Fred Done, said the business would become unprofitable if the tax rate approached even 35-40 %. Likewise, CEO Joanne Whittaker warned that the retail business would be lost entirely, putting some 7,500 jobs at risk.
Why Betfred says the retail model cannot survive
Betfred argues that a steep tax rise would render its high-street operations economically unviable: the margins on in-shop betting are thin, and added duties would squeeze profits to zero. The company also cautions that a sharp tax increase could drive punters toward the unregulated “black market”, reducing government revenue rather than increasing it.
The bookmaker’s 2023 results showed operating profit of just £0.5 million on revenues of £900 million — illustrating how tight the business case already is.
Wider sector concerns and background
Betfred is not alone in raising the alarm. Rivals such as William Hill have stated they might close up to 200 shops (impacting up to 1,500 jobs) if taxes rise sharply. The wider betting and gaming industry is currently taxed at rates that bring in about £3.8 billion-£4 billion annually. Historically, the General Betting Duty on operators is set at 15 % of gross profits since 2002.
In the background, the government is also consulting on bringing online betting in line with other forms of gambling to cut bureaucracy. A Treasury spokesperson emphasised that the current work “is not about increasing or decreasing tax rates”, although the industry believes otherwise.
Implications for jobs, high streets and public finances
If Betfred follows through with shop closures, the impact could be substantial: thousands of job losses, dozens of towns losing a key retail presence and further disruption for high-street footfall. On the fiscal side, while the government seeks extra revenue, the risk is that closures and migration to offshore/unregulated services would shrink the tax base rather than grow it.
For policymakers, the trade-off is stark: raise taxes to fund public services (such as child poverty alleviation) but risk undermining the regulated retail sector.
What to watch ahead
•Chancellor Rachel Reeves’s forthcoming Budget will clarify whether a gambling tax increase will be included or deferred.
•The outcome of the Treasury consultation on online betting alignment may signal future changes.
•Betfred’s next earnings report (including 2024 results and any further regulatory penalties) will be watched for signs of distress in retail operations.
•Industry lobbying efforts and whether they secure concessions (e.g., phased implementation, reliefs) could affect both business outcomes and high-street employment.
