Key Moments:
- Betfred has warned that all 1,287 of its UK shops may be at risk of closure if gambling taxes are raised.
- The company highlights that recent increases in wage-related costs have already added approximately £20 million in annual expenses.
- Industry peers Evoke and Paddy Power have also signaled potential shop closures due to proposed tax changes and rising costs.
Government Tax Proposals Raise Industry Concerns
Betfred has sounded the alarm over possible government plans to increase gambling taxes in the United Kingdom, cautioning that such a move could force the closure of its entire retail portfolio and jeopardize roughly 7,500 jobs. The company, established in 1967 by Fred and Peter Done, considers the suggested tax hikes under Chancellor Rachel Reeves among the most significant threats faced by its retail business in decades.
Betfred says all its shops may close if Reeves hikes gambling tax – GREAT, FANTASTIC, GOOD RIDDANCE
— Don't watch Westerns #FBPE 🌈☮️ (@DonFbpe) October 19, 2025
Potential Impact of Fiscal Reform
The UK government is reportedly considering raising tax rates on betting and gaming operators as part of wider fiscal reform efforts. Chancellor Reeves has argued that gambling companies should pay more in taxes, with some advisers, including former Prime Minister Gordon Brown, recommending that additional revenue could support social initiatives such as combating child poverty.
Financials and Current Tax Structure
Research conducted by the Institute for Public Policy Research (IPPR) previously estimated that a large tax increase, potentially up to 50%, may generate up to £3.2 billion in annual revenue. However, the industry is concerned about negative consequences for both employment and the broader betting environment.
| Tax Type | Current Rate |
|---|---|
| Online Casino Gaming Stakes | 21% |
| Slots and Gaming Machines Duty | 20% |
| General Betting Duty (Sports/Horseracing) | 15% |
Betfred reports that rising minimum wage and employer National Insurance contributions have already added around £20 million to its yearly costs. The company says even a modest increase in tax rates could threaten the profitability of segments of its business, especially as it acknowledges that hundreds of locations are currently loss-making.
Industry-Wide Effects
Concerns are not limited to Betfred alone. Earlier in the month, Evoke – the parent of William Hill – indicated that as many as 200 of its locations could shutter if tax conditions become harsher. Paddy Power has separately announced its intentions to close 57 shops across the UK and Ireland, referencing increased operational costs and evolving market conditions.
Betfred’s Retail Outlook
While many bettors have migrated to online platforms, Betfred continues to invest in physical locations. The company has suggested that, absent new tax pressures, its retail network could potentially remain viable for another two decades. However, the specter of additional tax burdens could accelerate shop closures significantly.
Broader Implications
Last year, Betfred generated nearly £1 billion in revenue, though it posted only a narrow operating profit after accounting for asset writedowns. With operations in the UK, Gibraltar, the US, and South Africa, Betfred’s potential withdrawal from UK High Streets could represent a pivotal moment for the country’s retail betting sector and its wider urban economy.
Summary Table: Betfred at a Glance
| Metric | Value |
|---|---|
| Number of UK Shops | 1,287 |
| UK Retail Jobs at Risk | ~7,500 |
| Annual Revenue (Last Year) | Nearly £1 billion |
| Recent Increase in Annual Costs | £20 million |
