Betfred has issued a worst case scenario warning to Rachel Reeves and the Labour Party, predicting a dark future for the high street should the government listen to Gordon Brown’s taxing advice.
Betfred owner Fred Done spoke to the BBC about the touted tax hikes, describing them as ‘the biggest threat to the industry in 57 years’.
Whilst previous industry efforts to warn the government over this issue have seemingly fallen on deaf ears, the consequences of Betfred’s statement may be more impactful given the operator is Britain’s “second-largest taxpayer”.
In total, the Done family paid £273.4m to the Exchequer in 2025. Despite two consecutive loss-making years — £71m in 2023 and £35m in 2024 — the group has continued to invest in its high-street estate, viewing the post-COVID period as an opportunity to consolidate its position as the UK’s largest betting operator.
Done warned that the potential tax hikes come at a time when the UK high street is already being “decimated with closures.”
Doubling down on the warnings, the operator’s Chief Executive Joanne Whittaker emphasised to The Sunday Times that the Treasury is underestimating the economic role of retail gambling.
She also stated that the operator is modelling for the worst case scenario, detailing frustrations that “People in the Treasury don’t understand our business.”
“The average bet in our shops is £9. People come in for a chat, have a coffee, and enjoy a flutter. We provide a safe, comfortable environment for people who want to bet responsible. We are not the scourge in our society.”
It comes after Flutter Entertainment’s UKI business confirmed the closing of almost 60 Paddy Power shops across the UK and Ireland within the next month, as retail difficulties continue to escalate.
The operator detailed that the closures have come following an assessment of its UK high street portfolio.
In total, 57 Paddy Power shops will be closed; 28 shops in the UK, 28 shops in Ireland and one shop in Northern Ireland, with Flutter UKI confirming to SBC News that 247 jobs are at risk, some 128 in the UK.
While the closures will lead to several job losses, employees who have been impacted are being offered support and redeployment opportunities elsewhere, where possible.
“In light of increasing cost pressures and challenging market conditions, we can confirm that we will be closing 29 shops across the UK (including one in NI) and 28 in Ireland within the next month,” said a Flutter UKI spokesperson.
“We are continually reviewing our high street estate, but it remains a key part of our offer to customers, and we are seeking to innovate and invest where we can as we adapt to different customer trends and needs.”
Previously, a large chunk of the focus around warnings of the impact on significant tax hikes has been over whether they will enable the black market to thrive. However, Betfred and Flutter are well-positioned to warn of the stark consequences on the high street given their extensive retail portfolios.
It adds further pressure on the retail sector, with high street headwinds already intensified as the digital shift elevates for many firms and sectors.
Gambling is no different, however, there has been a conscious effort to integrate an omnichannel experience into the gambling ecosystem, aligning the retail and the online betting journey.
If Betfred’s warnings are to be heeded though, the tax hikes of the government could thwart any efforts the industry has undertaken for retail betting to thrive.
