Betfred chairman and co-founder Fred Done warned that a proposed UK gambling tax increase could force the company to close nearly 1,300 betting shops. He said more than 7,000 jobs could be affected, while the company’s competitors have also raised concerns about the potential tax change.
The proposed tax increase could force Betfred shop closures and affect jobs if enacted.
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The Betting and Gaming Council warned the UK government that raising the tax on gaming machines from 20% to 50% could force more than 3,400 betting shops to close, according to its report. The BGC estimated the increase could cost 25,000 jobs and said a separate casino tax rise to 25% could put up to 40 casinos and 3,500 jobs at risk.
Entain chief executive Stella David said proposed gambling tax increases in the UK could make some of its roughly 2,300 betting shops unviable and lead the company to reconsider investment. The measures under discussion include raising remote gambling duty from 21% to 50%; the government is expected to consider tax changes in November’s budget.
Betfred has attributed its decision to close 132 retail betting shops partly to higher gambling taxes. HM Treasury said gambling duty rates for high street shops have not changed, disputing the tax argument. The Betting and Gaming Council said the closures showed its warnings about tax increases were materialising.
Betfred co-founder and chairman Fred Done said the company could close all 1,287 of its UK shops if gambling taxes rise. Done said a tax rate of 35% or 40% would leave the business unprofitable and put about 7,500 jobs at risk; he also said 300 shops currently lose money and a 5% tax increase would raise that figure to 430.
The UK Gambling Commission’s proposed Financial Risk Assessments faced criticism at a council meeting focused on the checks, according to the report. The Betting and Gaming Council said its pilot raised concerns about reliability, proportionality and fairness, while a YouGov poll found 65% of British bettors would not provide financial documents to keep gambling.