Betfred has become the latest UK gambling giant to warn of widespread shop closures if gambling taxes are increased in next month’s Budget, with co-founder and chair Fred Done telling the BBC any rate above 35 percent would mean there was “no profit in the business.” And no profit means 1,300 closures and thousands of job losses.
Following warnings from both Evoke and Paddy Power that they would be forced to close hundreds of UK shops if the Chancellor increased gambling taxes in the upcoming Budget, fellow operator Betfred has stated it would be forced to shutter its entire high street estate.
Talking to the BBC, co-founder and chair Fred Done said the proposed hike to betting levies represents the ”biggest threat” to the sector since he began in 1967, and could result in 1,287 of Betfred retail units becoming unprofitable, putting 7,500 jobs at risk.
“It doesn’t even need to go up to 50 percent,” said Done. “If it went up to anywhere like 40 percent or even 35 percent there is no profit in the business. We would have to close it down. I’m talking job losses. We’re talking probably 7,500.”
“Once the industry is closed down, it’s gone. People will still bet, but they’ll bet offshore with it. There’s plenty of bookmakers offshore who happen to take the bets, who don’t pay anything to this country.”
Done said 300 of Betfred shops are “currently losing money,” but an increase of just 5 percent tax would raise that number to 430, adding increases in Employer NICs and the NMW had increased outgoings by £20m.
The warning comes after Evoke announced plans to close 200 William Hill sites, while Paddy Power announced 57 of its shops across the UK and Republic of Ireland had become unviable.
Despite the stark trading environment, Done assured legislators that the high street sector still had room for growth, if granted the necessary support.
“Slowly it will go online, but we’re talking, without tax increases, we’ve still got probably 20 years of life on the High Street. And you know, the UK High Street is being decimated with closures.”
Betfred’s CEO Joanne Whittaker has also written to the Chancellor expressing the company’s concerns over plans to increase taxes, telling the Sunday Times that Rachel Reeves had been “stupid and naive” not to anticipate the impact on betting shops.
“We’ve got people in the Treasury who don’t understand our business.”
Avoiding a done deal
Fred Done said… “Once the industry is closed down, it’s gone. Without tax increases, we’ve still got probably 20 years of life on the High Street. And you know, the UK High Street is being decimated with closures…
