Betfred Chairman Warns of 1,300 Shop Closures Amid Tax Threat

URGENT UPDATE: Betfred Chairman Fred Done has issued a stark warning that the proposed increase in gambling tax could lead to the closure of nearly 1,300 betting shops across the UK, threatening the livelihoods of over 7,000 employees. This alarming declaration comes as the government debates new tax legislation aimed at reducing child poverty.

According to Done, this potential tax hike represents the “biggest threat” the gambling industry has ever faced. It could plunge numerous shops into deeper financial distress, with many already struggling to stay afloat. The implications for workers and local economies are immediate and severe.

The proposed tax increase, initially suggested by former Prime Minister Gordon Brown to Chancellor Rachel Reeves, has faced backlash. The Betting and Gaming Council has labeled the plan as “economically reckless,” warning it could drive gambling underground and increase black market activity.

“Many of our shops are constantly in the red,” Done stated, emphasizing that a tax increase would exacerbate existing financial difficulties. Betfred’s latest annual report revealed a profit of £1 billion, yet half of that was consumed by operational costs, highlighting the razor-thin margins in the industry.

The urgency of this situation is underscored by warnings from other major players. Evoke, the owner of William Hill, has indicated that 200 shops could close if the tax is enacted. Similarly, Paddy Power announced the closure of over 50 locations across the UK and Ireland, putting approximately 250 jobs at risk.

Entain, another rival firm, has also signaled possible shop closures in response to the potential tax changes. The impact on communities and workers cannot be overstated, as these closures would lead to widespread job losses and economic instability.

Looking ahead, the government faces mounting pressure to generate £50 billion for public finances, raising questions about the upcoming Autumn Budget. Professor Ashwin Kumar, Director of Research and Policy at the Institute for Public Policy Research (IPPR), has advocated for higher taxes on gambling, comparing it to tobacco and alcohol, citing that most profits stem from a small number of at-risk gamblers.

Charity GambleAware has echoed calls for stricter regulations to protect vulnerable populations, particularly children, from the harms of gambling.

The situation is rapidly evolving, and the stakes could not be higher for the gambling industry and its workforce. As discussions progress, stakeholders will be watching closely to see how the Chancellor responds to these urgent economic challenges.

Stay tuned for more updates as this story develops, and understand the broader implications of these potential changes on the UK’s gambling landscape.