Betfred’s co-founder and chairman, Fred Done, has warned that all 1,287 Betfred shops in the UK could close if the government raises taxes on gambling firms. This potential closure would put approximately 7,500 jobs at risk. Done described tax increases as the “biggest threat” the industry has faced in his 57 years in business, a sentiment echoed by other gambling companies.
Chancellor Rachel Reeves has been encouraged to consider raising taxes on gambling firms, possibly to help address child poverty. She indicated that these companies should contribute more to the tax system. The Institute for Public Policy Research (IPPR) has estimated that higher taxes on gambling could generate approximately £3.2 billion in revenue.
Betting and Gaming Council, which represents gambling firms, opposed these tax increases, arguing they could lead gamblers to the black market. Additionally, Evoke, owner of William Hill, reported that up to 200 of its retail outlets might close if tax rates increase. Done indicated that even a modest tax hike—anywhere from 35% to 50%—could make operations unprofitable.
He reported that 300 of Betfred’s shops are currently operating at a loss, which could increase to 430 with a 5% tax rise. Done also highlighted that if UK betting shops were to close, customers would likely turn to offshore bookmakers. Currently, the UK gambling sector pays various taxes, including 21% on online casino gaming and a 15-25% betting duty depending on the type of wager.
While Done acknowledged the trend toward online gambling, he stated that UK High Street shops still have a significant role in the market. He claimed that without tax increases, betting shops could remain viable for another 20 years. Betfred recently reported nearly £1 billion in revenue but a slim operating profit of just £500,000.
Opposing views stress the social and financial costs associated with gambling. Recent research suggested that harmful gambling results in excess costs between £1 billion and £1.77 billion. Critics argue for higher taxes, especially for online betting, to offset these societal impacts. A spokesperson for HM Treasury stated that they do not comment on speculative tax policy changes.
Source: https://www.bbc.com/news/articles/c5ydpmy7mj1o?at_medium=RSS&at_campaign=rss