Betfred warns 1,300 betting shops face closure over gambling tax rise

Britain’s second-largest betting company has warned it will close all 1,300 betting shops and cut 7,000 jobs if the government goes ahead with plans to double taxes on gambling in next month’s Budget.

Betfred chief executive Joan Whittaker said the measures being considered by Chancellor Rachel Reeves would “eliminate the high street betting shop”, threatening the future of Britain’s brick-and-mortar gaming sector.

“The scariest element is that we will lose the entire retail business,” Whittaker said. Sunday Times. “I’m not panicking – I’m not panicking. If these spikes happen, that’s the reality.”

The Warrington-based company, owned by brothers Fred and Peter Dunne, is warning of what it calls an “existential threat” to the industry if Treasury proposals to increase sports betting fees from 15% to 30%, and machine and online gaming fees from 20% to 50%, are enacted.

The changes – strongly backed by former Prime Minister Gordon Brown and more than 100 Labor MPs – are expected to raise £3.2bn a year, enough to fund the scrapping of the two-child benefit cap.

There are currently around 5,900 licensed betting shops in the UK, employing approximately 46,000 people. If Betfred closes its holdings, rivals are likely to follow suit, Whittaker said.

“If the impact on us is that we lose the entire property, that’s the same for all of our counterparts,” she said.

In a letter to Reeves and Lisa Nandy, the culture secretary, Whittaker warned that the policy could reduce, not increase, Treasury revenues by driving gamblers into unregulated offshore companies.

“These proposed changes would have the opposite of the intended effect: reducing tax revenues and accelerating the growth of the black market,” she wrote.

Whittaker admitted she was “stupid and naive” when she assumed the government would exclude high street shops from the new system, adding that Treasury officials “don’t understand our business”.

Whitaker’s frank public stance represents a departure from the usually secretive Empire. Describing herself as an ‘accidental bookie’, she began working for Betfred after meeting Fred’s daughter Dawn while studying part-time at Bolton College.

She helped launch the company’s first online business in the early 2000s, then left to found a child care voucher company, then returned in 2021 as CEO when Fred Dunn became president. The Done family was ranked as Britain’s second-largest taxpayer in 2025, contributing £273.4 million.

Betfred’s warning follows news that rival Evoce (owner of William Hill) is preparing to close 200 stores, while Paddy Power has announced the closure of 57 stores. Entin, the FTSE 100 group behind Ladbrokes and Coral, said its retail arm would be “at risk” with steep tax rates.

Campaigners argue the tax rise is overdue after years of regulatory laxity under Labor governments in the 2000s. A 2023 study by Gamble Aware found that 20% of adults are directly or indirectly affected by gambling, while the NHS estimates that 0.4% of the adult population has a gambling problem.

Whittaker insists that most Betfred customers bet modestly: “The average bet is £9. People come and sit and have a coffee and a chat. We’re part of the local communities. We’re not the blight of the community.”

It warned that forcing major operators out of business would only enable illegal betting sites, which accounted for 71% of online bets in Europe last year, according to data analyst Yield Sec.

“The safest place for anyone to bet is with a UK regulated bookmaker,” she said. “We haven’t always gotten it right, but we’ve invested heavily in protecting players. If someone wants to bet, they should do so safely.”

Behind the scenes, industry sources believe Gordon Brown remains the driving force behind the expected tax reform. Asked what she would say to him if she had the chance, Whittaker said: “Come and look at our numbers. Look at the models. Look what these tax rates will do to jobs in the UK.”

So the November 26 budget could be crucial for both Reeves and Britain’s beleaguered betting industry – determining whether high street bookmakers survive, or whether the era of the local betting shop is finally coming to an end.