Betfred warns machine gaming duty hike could end shops

Betfred founder Fred Done has warned that a proposed increase in the UK’s Machine Gaming Duty (MGD) from 20% to 40% could lead to the closure of 495 of the bookmaker’s retail shops within a year, with 2,575 jobs potentially affected.

Speaking to the Financial Times, the 83-year-old businessman said the proposed tax increase was being considered by HM Treasury ahead of Chancellor John Healey’s Autumn Budget on October 28. Done said gaming machines remain a major source of profit for Betfred’s retail estate, contributing around half of shop profits despite the £2 maximum stake introduced for fixed-odds betting terminals in 2019.

He argued that the economics of operating betting shops would become increasingly difficult if machine taxation, employment costs and other expenses continued to rise. “I believe that by 2030 we will have no betting shops. The high street will be dead,” Done said, adding that Betfred had calculated that some shops would no longer be viable under higher operating costs.

Betfred has already reduced its retail estate

The warning comes as Betfred continues to scale back its UK retail presence. The company has closed 132 shops this year, following a previous increase in Remote Gaming Duty.

Chief executive Jo Whittaker said when the closures were announced that higher employer National Insurance contributions, wage inflation, increased gambling taxes and broader economic uncertainty had combined to make parts of the estate uneconomic.

Remote Gaming Duty increased from 21% to 40% in April 2026. A separate 25% General Betting Duty rate for remote betting, excluding UK horse racing, is scheduled to take effect in April 2027.

Done also said Betfred was reviewing its sponsorship of Britain’s five classic horse races, including the Epsom Derby, amid uncertainty over the future tax burden. The bookmaker has separately ended its sponsorship of rugby league’s Super League, with tax pressures cited among the factors.

Wider industry pressure

Betfred’s concerns come amid a broader debate over the impact of higher gambling taxes on UK operators and the retail betting sector.

Entain chief executive Stella David has said a doubling of MGD would add about £100 million to the company’s operating costs. In correspondence with the UK prime minister, she warned that higher costs could translate into job losses and the closure of established high-street businesses.

Other major operators have also reduced their retail estates. Evoke closed 200 William Hill shops in April, while Flutter has announced plans to close up to 100 Paddy Power locations across the UK and Ireland by the end of the year, with around 400 jobs potentially affected.

The industry has also raised concerns that further reductions in regulated betting provision could increase the risk of customers turning to unlicensed operators. Such claims remain part of the industry’s argument against higher gambling taxes rather than an established outcome of the proposed changes.

Done challenges industry tax criticism

Done has rejected suggestions that the industry’s warnings about higher gambling duties amount to “scaremongering.” He specifically criticised comments from Dame Meg Hillier, chair of the Treasury Select Committee, who has used that term when discussing industry responses to the proposals.

Done also questioned how much additional tax the sector can absorb while maintaining its retail operations.

“They keep saying those with the broadest shoulders should be paying more tax. Well, how broad do my shoulders have to be? We paid £400 million in taxes as a family last year,” he said.

At the same time, Done acknowledged the scale of gambling activity in Britain. Gross gambling yield reached £17.5 billion in 2025/26, according to figures cited in the discussion around the tax changes.

The government is considering measures to increase revenue without raising the headline rates of income tax, National Insurance or VAT. Gambling duties are among the areas being examined ahead of the Autumn Budget, with the final treatment of machine gaming and other gambling taxes yet to be confirmed.