Betfred says all its shops may close if Reeves hikes gambling tax

According to the company's co-founder and chairman, all 1,287 Betfred shops could be removed from the UK High Street if Chancellor Rachel Reeves raises taxes on gambling companies. Fred Done, who founded Betfred with his brother in 1967, said a closing of that size would put 7,500 jobs in jeopardy. Tax rises, according to the billionaire businessman, were the largest threat to the company in his 57 years. It mimics similar warnings from other gambling companies. To the chancellor, increasing taxes on betting businesses in the Budget has been suggested.

I do believe there is a case for gaming companies paying more,

she told ITV: "They should pay their fair share of taxes and we'll make sure that happens.

Former Prime Minister Gordon Brown has encouraged residents to increase taxes on the gaming industry in order to reduce child poverty. According to the Institute for Public Policy Research (IPPR), additional taxes on the industry, up to 50%, could raise £3. 2bn. Brown's initiative, according to the Betting and Gaming Council, which represents gambling businesses, would force gamblers into the black market. Tax hikes have been rejected by betting companies, who have resisted calls for higher taxes. If the company faces higher taxes, up to 200 William Hill retail stores could close, according to its founder Evoke, who said earlier this month. Mr Done of Betfred said that if taxes on UK gambling businesses increased, he would also feel compelled to close his High Street shops.

It [tax] doesn't even have to go up to 50%. There is no profit in the company if it went up to 40% or even 35%. We would have to close it down. I'm talking job losses. We're talking probably 7,500,

he said. He said 300 of his stores were currently losing money and that a 5% increase in gambling levy would bring the number up to 430.

Once the [UK] industry is closed down, it has been decommissioned. People will still bet, but they will bet offshore with it.

There are a lot of bookmakers offshore who make the bets but don't pay anything to this world,

he said. Punters' winnings from gaming are not taxed in the UK, nor is VAT on bets charged. However, the gaming industry pays additional taxes, including: Mr Done, who said that increases in employer National Insurance Contributions (NICs) and the minimum wage had already added £20 million to his company's costs. Customers are increasingly going online, like banking or buying clothes, making it impossible to close betting shops. Paddy Power, a rival company, announced on Thursday that it would close 57 shops around the UK and Republic of Ireland, citing rising cost pressures and challenging market conditions as reasons for the decline.

Slowly it will go online, but we're talking,Mr Done said,we're still have probably 20 years of life on the High Street. "You should know that closures are destroying the UK High Street. Betfred earned nearly £1 billion in its most recent annual results but made an operating loss of just £500,000 after a string of writedowns on its assets. With investments in both online gaming and High Street sports betting, the family-owned company has bases in the United Kingdom, Gibraltar, the United States, and South Africa.

Critics point to the social and economic risks posed by gambling. The excess costs of harmful gambling have been estimated by the Office for Health Improvement and Disparities, 2023. 77bn. Higher taxes were required on the industry, especially for online betting, according to Prof. Ashwin Kumar, director of research and policy, to reflect the negative effects gambling has on some individuals.

We know that the bulk of the casino's earnings come from a relatively small number of gamblers, many of whom are in danger of serious injury. And so we're suggesting that the duties should be increased, just like cigarettes and alcohol.

ChildAware,

a charity that supports people with gambling addiction, said

further control

was needed on advertising to shield children and young adults, as well as raising concerns of the dangers. However, Mr Done argues that high Street betting shops in the United Kingdom provide better protections for people with gambling addictions, as well as tax savings, than offshore and offshore competitors. Mr Done said

we're 10 to one against

if he thinks his appeal to keep taxes as they are likely to triumph over the chancellor, which means that many betting stores will close.

We do not comment on rumors about future shifts in tax policy," a HM Treasury spokesperson said.