URGENT UPDATE: UK bookmaker Betfred is facing a potential crisis as it warns that nearly 1,300 betting shops may close if a proposed gambling tax increase is enacted. This alarming development threatens over 7,000 jobs across the country, highlighting a severe impact on local economies.
Betfred’s chairman and co-founder, Fred Done, has labeled the tax hike as the “biggest threat” the industry has faced, a sentiment echoed by competitors. The proposed changes stem from a recommendation by former Prime Minister Gordon Brown to Chancellor Rachel Reeves aimed at tackling child poverty. However, the Betting and Gaming Council has condemned the plan as “economically reckless,” warning it could push gambling underground.
According to Done, many of Betfred’s shops are already operating at a loss, and an increase in taxes would exacerbate this situation. “A large number of our shops are in the red, and this tax increase would only worsen that,” he stated. Betfred’s recent annual report reveals that despite generating £1 billion in profits, half of that amount is consumed by operational costs.
As the conversation around gambling taxes intensifies, the Institute for Public Policy Research (IPPR) estimates that a tax increase of nearly 50% could yield approximately £3.2 billion for public finances. However, industry leaders are sounding alarms; Evoke, owner of William Hill, has warned of potential closures of 200 shops, while Paddy Power announced plans to shut down over 50 locations across the UK and Ireland, placing around 250 jobs at risk.
The threat of widespread closures is not limited to Betfred. Recently, Entain also indicated that it may follow suit if the tax is approved. Done predicts that without tax increases, traditional betting shops could survive for another 20 years on the High Street, but warns that the industry’s future is at stake.
As pressure mounts on Chancellor Reeves to address a looming £50 billion shortfall in public finances, speculation grows regarding the upcoming Autumn Budget. Professor Ashwin Kumar, director of Research and Policy at the IPPR, argues for increased gambling taxes, stating, “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. Higher duties are essential, similar to those imposed on tobacco and alcohol.”
Charity GambleAware is also advocating for stricter regulations to protect vulnerable populations, especially children, from gambling-related harms.
The stakes are high as the industry braces for potential upheaval. What happens next could reshape the landscape of UK gambling forever. Stay tuned for further updates as this critical situation develops.
