Betfred Says Retail Business at Risk as UK Prepares for Possible Gambling Tax Hike
Betfred has warned that its entire retail betting operation could be at stake if the UK moves ahead with higher gambling taxes in the Autumn Budget.
LISTEN TO THIS ARTICLE:The operator’s new chief executive, Joanne Whittaker, told national press the company is preparing for a "worst-case scenario", saying the measures under consideration by HM Treasury could force large-scale shop closures. "This is not scaremongering. It’s a business reality", Whittaker said. "The most frightening element is we’re going to lose the whole retail business."
Whittaker warned that a sharp tax increase may be counterproductive for government revenues, arguing that punters could migrate to unregulated offshore sites if high-street and licensed online offerings become uneconomical. "If these rates go through, the reality is we won’t have a business left to tax", she added.
The comments come as Chancellor Rachel Reeves and Treasury officials consider reforms to the gambling tax framework. Earlier this year the Treasury consulted on consolidating three existing levies into a single Remote Betting and Gaming Duty, a change many industry observers say would align sports-betting taxation with higher casino-style rates. Separately, a campaign backed by more than 100 Labour MPs and members of the Liberal Democrats has urged raising Remote Gaming Duty from its current 21 percent to levels approaching 50 percent, with proposals also discussed to significantly increase machine games duty.
Industry groups have warned that the burden of any new levy could fall heavily on retail estates rather than online operators. Betfred, the UK’s third-largest betting-shop operator by estate size behind Entain and Evoke, has continued investing in shops despite recent financial setbacks. The company reported losses of £71 million in 2023 and £35 million in 2024, while owners Fred and Peter Done were among the UK’s biggest taxpayers last year, contributing £273.4 million in personal tax payments.
Other major operators have already signalled potential retail retrenchment in response to tax pressure. Entain has warned that its Ladbrokes and Coral chains could be scaled back; Evoke has disclosed it is reviewing parts of the William Hill estate; and Flutter Entertainment announced plans earlier this year to close dozens of Paddy Power shops as it reshaped its physical footprint.
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Industry observers say the Treasury faces a difficult balancing act between raising revenue and preserving licensed, regulated provision. An independent industry analyst commented: "Aligning betting tax with online casino rates would fundamentally change the unit economics of betting shops. The immediate effect would be fewer shops, reduced local footfall and a likely growth in unregulated product use – all outcomes that would undermine the policy aim of protecting consumers and collecting tax from legitimate operators."
Regulatory consequences could extend beyond shop closures. The Gambling Commission has previously expressed concern about consumer protection in unregulated markets and will be watching any shift in customer behaviour closely. Local communities and high-street economies could also feel the impact where betting shops provide social spaces for regular customers, a point Whittaker emphasised by noting the average in-shop stake is around £9 and many visitors value the social interaction.
For now, operators say they are modelling a range of outcomes and preparing contingency plans ahead of the Autumn Budget. If the Treasury moves to a higher, unified duty, the next phase is likely to be intense commercial and political debate: operators will set out impact assessments, unions and local councils may lobby to protect jobs and community spaces, and MPs will face pressure from both public health advocates and business groups.
As the Budget approaches, the spotlight will remain on how policymakers reconcile public finance goals with the practical consequences for a regulated gambling sector that supports thousands of jobs and contributes significant tax receipts. The final decisions will determine whether the UK preserves a substantial licensed retail estate or accelerates its decline.
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