Betfred Warns of Shop Closures as Gambling Tax Threatens Jobs

URGENT UPDATE: Major UK bookmaker Betfred has issued a dire warning that nearly 1,300 betting shops could be forced to close if a proposed gambling tax increase is approved. This alarming development puts at risk the jobs of approximately 7,000 employees across the nation.

Betfred Chairman and co-founder Fred Done characterized this potential tax hike as the “biggest threat” ever faced by the gambling industry. His concerns are echoed by competitors and industry analysts who predict severe repercussions. The proposed tax increase, initially suggested by former Prime Minister Gordon Brown to Chancellor Rachel Reeves, aims to alleviate child poverty but has been labeled “economically reckless” by the Betting and Gaming Council.

Officials from the Betting and Gaming Council emphasize that such an increase could fuel a rise in black market gambling, further endangering legitimate businesses. Done revealed that many Betfred shops are already struggling financially, operating at a loss, and an increased tax burden would exacerbate this situation.

Despite reporting a profit of £1 billion last year, Betfred’s latest annual report indicates that half of this revenue went towards covering operating costs. The gambling sector is bracing for impact, as estimates from the Institute for Public Policy Research (IPPR) suggest that a tax hike could generate an additional £3.2 billion for public finances.

Rival companies are also sounding alarms. Evoke, owner of William Hill, warns of potential closures of 200 shops should the tax pass. Similarly, Paddy Power has announced plans to close over 50 locations across the UK and Ireland, risking around 250 jobs. Entain has also indicated that shop closures may follow if the new tax is enacted.

Looking ahead, pressure mounts on Chancellor Reeves to address the government’s need for £50 billion in public finances. As the Autumn Budget approaches, stakeholders are keenly watching for any changes.

Professor Ashwin Kumar, Director of Research and Policy at the IPPR, argues for higher taxes on gambling, stating, “We know that most of the profits made by gambling companies come from a very small number of gamblers, many of whom are at risk of serious harm.” This perspective is shared by charity GambleAware, which advocates for stronger regulations to protect vulnerable individuals, particularly children.

As the situation develops, the impact on thousands of jobs and the future of physical betting shops hangs in the balance. Stakeholders and the public are urged to stay informed as critical discussions unfold in the coming weeks.