Betfred Could Shut 45% of UK Retail Estate if MGD Rises to 40%
Founder Fred Done warns 495 more shops, 2,575 jobs at risk as UK government considers doubling machine games duty in the Autumn Budget.
Key Takeaways
- Betfred warns it could close 495 shops—45% of its UK retail estate—if machine games duty doubles to 40%.
- Potential closures would be in addition to 132 already confirmed, with a further 2,575 jobs at risk.
- Sponsorship of the five British Classic horseraces, worth £15.8m a year, could be withdrawn by Betfred under new tax rates.
- The proposed tax changes would lower government tax receipts from Betfred by an estimated £67m.
- Wider industry workforce reductions have already followed recent increases in remote gaming duty.
Betfred may close 495 additional betting shops, amounting to 45% of its UK retail footprint, if the government doubles machine games duty (MGD) from 20% to 40% in next month’s Autumn Budget. Founder Fred Done said this move could result in around 2,575 jobs lost and a further contraction of high-street betting. The warning follows confirmed plans to shutter 132 shops—affecting 600 roles—after a recent hike in remote gaming duty.
MGD Hike Threatens Significant Shop Closures
In an interview with the Financial Times, Fred Done stated that if MGD applied to Category B machines increases to 40%, Betfred would be forced to close nearly 500 shops on top of the already announced 132 closures. These potential cuts total around 45% of Betfred’s retail estate and could eliminate 2,575 positions across the business. The initial cost-cutting came after the government, under then-Chancellor Rachel Reeves, enacted a remote gaming duty increase from 21% to 40% starting 1 April 2025.
Done highlighted that the MGD escalation would add to existing operational pressures. He projected that the government's tax receipts from Betfred could fall by £67 million if these closures go ahead. The company's base in Warrington underscores the potential local economic impact.
Impact on the High Street and Community
Betfred has described its high-street presence as a community anchor, serving local wagerers who typically place modest bets—averaging £10.87—while also supporting neighbouring businesses. Done argued that every shop closure leaves "a hole in its community" and said he frequently receives emotional letters from former shop managers about the consequences of these decisions.
"I believe that by 2030 we will have no betting shops. The high street will be dead – we’ve already worked it out that with the increases in taxes and salaries and other wages, it won’t be worth operating," Done said to the FT.
He added that restricting regulated betting would likely drive customers to unregulated markets, reminiscent of patterns observed during Prohibition in the US, undermining tax collection and controls.
Secondary Effects on Horseracing and Sponsorship
Betfred’s threat to withdraw from British horseracing sponsorship has implications well beyond its own operations. In 2024, Betfred became the first company to sponsor all five UK Classic horseraces: the Derby, Oaks, 1,000 Guineas, 2,000 Guineas, and St Leger. Done wrote in The Sunday Times that their verbal agreement to renew sponsorship for three more years may be abandoned if the budget raises MGD. This could cost horseracing £15.8 million in funding.
Done characterised the possible tax changes as "a raid by the new morality police", arguing that most Betfred customers are not high-rollers, but working people who enjoy a bet in their local shop. He expressed frustration at the grouping of betting shops with vape shops and "rogue operators" in government references, stating "there’s nothing wrong with having a bet."
Industry-Wide Redundancies and Regulatory Pressures
The MGD proposal is the latest in a series of tax hikes affecting the UK land-based and remote gaming industry. Recent policy changes have already prompted job losses throughout the sector:
- Entain announced 400 redundancies in customer care, as CEO Stella David cautioned that increased taxes could push players towards the black market.
- Bet365 is cutting 340 roles, with 300 at its Stoke-on-Trent headquarters.
- Flutter and Evoke have each announced plans to shutter retail units with associated job losses.
The Autumn Budget's outcome will be closely watched by stakeholders across the retail gambling and betting industry, given the potential for further disruption. The industry has argued that escalating levies risk undermining the licensed and regulated sector, impacting tax revenues, jobs and funding for sports like horseracing.
Context: Government Policy and Market Implications
Under former Chancellor Rachel Reeves, the April 2025 tax changes increased remote gaming duty to 40% and confirmed plans to raise general betting duty from 15% to 25% from April 2027. The current Chancellor, John Healey, in Andy Burnham’s administration, is reportedly considering the MGD hike for this year’s budget.
“Any significant increase to MGD would go beyond a fiscal grab. It would be a raid by the new morality police,” Done wrote in The Sunday Times.
Whether the government will extend its current approach to the retail sector, further reshaping the regulatory environment for high-street bookmakers, remains uncertain. Betfred’s warnings underscore the stakes as policymakers weigh the fiscal and social consequences ahead of finalising the Autumn Budget.
Frequently Asked Questions
What is the impact of doubling machine games duty on Betfred's UK shops?
Doubling machine games duty from 20% to 40% could force Betfred to close 495 additional betting shops, representing 45% of its retail estate, and lead to approximately 2,575 job losses, according to founder Fred Done.
How have recent tax changes already affected Betfred?
Betfred has already announced plans to close 132 shops with around 600 jobs lost, following an increase in remote gaming duty from 21% to 40%, which took effect in April 2025.
What could happen to Betfred's sponsorship of British horseracing?
Fred Done warned Betfred would withdraw sponsorship from all five British Classic horseraces, ending a deal that funds horseracing by £15.8 million annually, if the machine games duty rate is increased to 40%.
How would Betfred shop closures affect government tax receipts?
If the proposed shop closures occur, government tax receipts from Betfred would fall by an estimated £67 million, reflecting the reduced retail presence and associated turnover.
What is the broader industry reaction to recent UK gambling tax increases?
Other major operators, including Entain, Bet365, Flutter, and Evoke, have announced job cuts and retail closures; Entain alone plans to cut 400 jobs, partly due to similar tax and regulatory pressures.
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Marcus Webb
Industry Deals Correspondent
Marcus Webb covers the deal flow of the gambling industry — operator strategy, M&A, market entries, and product launches from sportsbook rebrands to full platform migrations. The reports name the companies, valuations, and jurisdictions exactly as disclosed and separate the announcement from its market impact. When a group consolidates a brand or a challenger launches into a new state, Marcus Webb explains who gains, who pays, and what closes next quarter.
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