Betfred Executive Warns of Potential Shop Closures Amid Tax Hike Proposals
The co-founder and chairman of Betfred, one of the United Kingdom‘s largest bookmakers, has issued a stark warning that proposed tax increases on gambling firms could force the closure of all company shops. According to reports, Fred Done stated that tax rises would represent the “biggest threat” to the industry during his 57-year career in the sector.
Potential Tax Reforms Spark Industry Concerns
The warning comes as the UK gambling industry awaits the Autumn Budget scheduled for November 26, 2025. Sources indicate that Chancellor Rachel Reeves recently told ITV that gambling firms should “pay their fair share of taxes,” suggesting potential reforms are under consideration. The comments have raised concerns within the industry about significant tax increases that could impact profitability.
Analysts suggest the pressure for tax reform has intensified following a September initiative where more than 100 Labour MPs signed a letter calling for increased gambling taxes to address child poverty. The campaign, led by former Prime Minister Gordon Brown, has amplified proposals from the Institute for Public Policy Research that recommend substantial tax hikes on gambling operations.
Proposed Tax Increases and Industry Response
According to the IPPR report, remote gaming duty could increase from 21% to 50%, while machine games duty on operator profit might rise from 20% to 50%. The report states these measures would generate additional revenue for public services. However, the UK Betting and Gaming Council has criticized the proposals, calling them “anything but thoughtful” and warning of potential negative consequences for the industry.
In his BBC interview, Fred Done explained that even moderate tax increases could eliminate profitability. “It doesn’t even need to go up to 50%. If it went up to anywhere like 40% or even 35% there is no profit in the business. We would have to close it down,” he stated. The businessman further warned that such closures could result in approximately 7,500 job losses across the company’s operations.
Current Business Challenges and Broader Industry Impact
The Betfred chairman revealed that 300 of the company’s shops are “currently losing money” and suggested that a 5% tax increase could raise that number to 430. This comes amid broader gambling industry challenges and changing market conditions. The potential tax reforms arrive as companies across various sectors navigate economic uncertainties and regulatory changes, with similar industry developments affecting technology and entertainment markets.
The situation reflects wider trends in business regulation and taxation approaches. As governments worldwide reconsider tax structures for various industries, companies are adapting to new economic realities. These changes parallel market trends in financial services and related innovations in corporate strategy. The gambling industry’s response to potential tax increases demonstrates how businesses must constantly evaluate their operational viability amid regulatory changes.
Broader Business Landscape and Future Implications
The debate over gambling taxation occurs alongside significant transformations across multiple industries. Technology companies are making strategic pivots, with recent technology investments shaping future market positions. Similarly, discussions about business resilience have gained prominence following industry developments in digital infrastructure. Even cybersecurity firms are experiencing changes, as evidenced by related innovations in funding and growth strategies.
Betfred has declined to provide additional comments beyond Done’s published statements. The company’s shopfronts, such as the London location pictured in archival images, represent the physical presence that could be affected by the proposed tax changes. As the Autumn Budget approaches, industry observers will be watching closely to see how the government balances revenue generation with business viability concerns in the gambling sector and beyond.
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