Betfred warns of 45% store closure if MGD tax rises to 40%

Betfred could close almost half of its retail stores in the UK if the government increases the Machine Games Duty (MGD) from 20% to 40% in the upcoming autumn budget. This warning was issued by Fred Done, the company's founder, in an interview with Financial Times; it would entail 495 stores—45% of its physical operation—resulting in approximately 2,575 job losses, in addition to the already announced closures.

MGD at 40%: direct impact on stores and employment

Done's warning details that raising the MGD to 40% would force Betfred to close 495 stores. This figure adds to the 132 stores already set to close, a change that would leave about 600 people unemployed. The initial closures were a direct response to the increase in the remote gaming duty, which rose from 21% to 40% as ratified in the autumn budget of 2025 by then-Chancellor Rachel Reeves. Furthermore, Reeves proposed increasing the general betting tax from 15% to 25% starting in April 2027. Following changes in the UK Treasury, with John Healey taking over under Andy Burnham's government, a review of a new increase in MGD is being studied for the upcoming October budget.

“I believe there will be no bookmakers left by 2030. The high street will be dead: with tax and wage increases, it is not worth operating. Do you think bettors will stop gambling? No, they will find another way, just like during Prohibition,” Fred Done told the FT.

Done argues that the decision to close stores is a response to unsustainable tax and operational cost increases. The Warrington-based operator estimates that the Treasury would lose around £67 million annually if the MGD rises and Betfred significantly reduces its presence in the retail sector.

Fiscal, labor, and racetrack consequences

An increase in MGD would impact not only the retail network: it would also affect the funding of British horse racing and the state's tax revenues. Done stated in The Sunday Times that if the tax is doubled, Betfred would be forced to withdraw its sponsorship from the five “classic” races in the British calendar—Derby, Oaks, 1,000 Guineas, 2,000 Guineas, and St Leger—a comprehensive coverage initiated in 2024. He explained that there is a verbal agreement to extend this sponsorship for three more years, but its continuation depends on the fiscal policy decided next month.

Should the increase to 40% materialize, Done estimates a reduction of £15.8 million annually in funds for horse racing, a considerable blow to the local horseracing industry. He also lamented the recent equation made in official narratives between betting shops and vaping stores and illegal operators, defending the social and community contributions of the former.

“Our customers are not compulsive gamblers or big bettors: they are workers who enjoy a bet and a cup of tea. Every closed store leaves a void in their community,” Done wrote in The Sunday Times.

Other operators in a similar situation

Betfred's warning coincides with a wave of cuts among UK operators affected by the increase in remote gaming duty and the prospect of more taxes. Entain announced a reduction of 400 jobs in its customer service area; its CEO, Stella David, pointed out that higher tax burdens would push users towards unregulated markets. Bet365 will cut 340 positions—mainly at its Stoke-on-Trent headquarters—and both Flutter Entertainment and evoke are planning further layoffs and closures of physical units.

Regulatory and competitive risks under new taxes

The discussion surrounding the future of the retail betting channel in the UK is framed within regulatory debates that affect both traditional and digital operators, with consequences on the market and the regulation of the sector. The fiscal debate encompasses the sustainability of business models and the role of physical stores as spaces for socialization and responsible consumption, in contrast to online gambling and illegal channels.

The Betfred case illustrates how taxation policies can redefine the presence and impact of major operators on employment, revenue, and the national sports calendar.