Betfred posts £74.1M operating profit before UK remote tax rises

Betfred recorded an operating profit of £74.1 million for the 52 weeks ended 29 March 2026, before the recent UK online gaming tax increases came into force. The group's revenue reached £995.6 million in that period, while year-on-year comparable revenue rose by £23.3 million.

Key results for the year and channel breakdown

The group reported revenue of £995.6 million and an operating profit of £74.1 million for the 52 weeks ending 29 March 2026. Gross profit was £719.9 million and EBITDA stood at £140.6 million.

Online operations generated 45% of the group's revenue in that period; the retail channel still contributed the majority with 55% of the total, although that share fell from 61% in the prior period. Betfred attributes part of the comparable growth to higher marketing spend "to increase market share and attract new customers."

The company reported exceptional accounting charges of £7.1 million in total, including £801,000 related to the closure of a US subsidiary. Within operating profit there were £4.6 million of "aborted acquisition costs."

Remote gaming tax: changes that affected the following year

From 1 April 2026 the Remote Gaming Duty rose from 21% to 40% for online casino activity in the UK. That tax increase is not included in the accounts cited, because it applied to the year following the 29 March 2026 close.

The fiscal timetable also foresees that from April 2027 a 25% rate will apply to eligible remote betting, while UK horse-racing bets will retain a 15% rate. It is important to emphasise that the Remote Gaming Duty taxes online casino play, and the remote betting rate taxes eligible remote bets; they cover different activities.

See analysis of the regulatory consequences in regulation for context on the impact to margins and pricing.

Risk to the shop estate and management reaction

In August Betfred considered closing up to 132 shops in the UK. Fred Done, Betfred's founder, separately told the Financial Times that a doubling of Machine Games Duty could force the closure of 495 shops within a year and cost 2,575 jobs. That warning described a potential additional tax rise, not a change that had been approved.

The group confirmed headcount fell from 7,872 to 7,795 employees during the period, but comparable staff costs rose by £19.2 million, partly attributable to minimum wage increases.

Comparability and calendar effects

Comparisons with prior figures require care. The previously published figure of £1.5 billion (likely referred to as £1.5bn) covered 78 weeks because Betfred changed its fiscal year-end from September to March. On a comparable 12-month basis, revenue showed growth.

That change of accounting year means year-on-year movement must be read with calendar-adjustment caveats; management declined to disclose profit by geography on the grounds it would be "severely prejudicial to the interests of the group."

Operational impact and management priorities

Most of the operational growth in the period is explained by the retail/digital mix and commercial investment. The online share increased, which partly eases dependence on the physical channel. However, the tax changes introduced on 1 April threaten online casino profitability and the physical shop model if further rises in levies such as Machine Games Duty are implemented.

For operators and suppliers the practical read is clear: the tax cost has already risen for online gaming from April 2026 and its effect on margin, consumer prices and retail viability must be modelled.

"A doubling of Machine Games Duty could force 495 closures and cost 2,575 jobs," Fred Done warned the Financial Times.

"Severely prejudicial to the interests of the group," management said when justifying the refusal to publish profit by geography.

What investors and suppliers should watch

Investors should separate the reported operating result —which does not incorporate the 1 April tax rise— from the subsequent tax impact. Suppliers and commercial partners should prepare scenarios with Remote Gaming Duty at 40% and a remote betting rate at 25% for some products from 2027; see [b2b](/b2b) for trade implications.

Analysts will ask about the group's ability to pass costs to customers, demand elasticity in key markets and the plan to restructure the shop estate if tax charges or Machine Games Duty rise further.

Betfred published these figures with an accounting close of 29 March 2026 and the relevant tax increases took effect on 1 April 2026. The company linked part of the growth to customer-acquisition investment and said it withheld geographic profit breakdowns for competitive reasons.