The future of Betfred, a household UK sportsbook brand established in 1967 by two brothers, is at risk. Chairman Fred Done said he’d be forced to shutter all of his firm’s 1,287 retail betting shops should the widely expected UK gambling tax rise go through in November.
Comments by UK Chancellor Rachel Reeve in September suggested firms like BetFred should “pay their fair share of taxes,” after an independent study estimated a hike as high as 50% could raise £3.2bn ($3.7m) in revenue and be used “to lift children out of poverty.”
We would have to close it down.”
Done told the BBC that 300 BetFred retail sportsbooks were currently “losing money” and even a gambling tax increase of 5% would place another 130 of his shops in the red. “If it went up to anywhere like 40% or even 35% there is no profit in the business,” Done stated. “We would have to close it down.”
Done said the mass shutdown of betting shops is essentially game over for UK high street sportsbooks, stating once the “industry is closed down, it’s gone.” The exec explained that while people will still bet, they’ll use offshore firms “who don’t pay anything to this country.”
Done said while sports betting was slowly going online in the UK, retail sportsbooks had another “20 years of life” left in them if they weren’t taxed more. However, the Betfred chairman doesn’t think the odds of the Chancellor heeding his concerns are any good. “We’re 10 to one against,” Done said.
