Betfred warns of mass closures amid proposed gambling tax hike, raising concerns over licensed betting shop viability

Betfred, one of Britain’s largest bookmakers, has issued a stark warning that it may be forced to close all 1,300 of its licensed betting shops if Chancellor Rachel Reeves proceeds with proposed increases to gambling taxes. The move, which could affect over 7,000 jobs, has sparked industry-wide alarm over the future of high street betting and the sustainability of licensed operators.

At the heart of Betfred’s warning is the fragile economics of the licensed betting office (LBO) model. According to chairman Fred Done, 300 shops are already operating at a loss, and even a modest tax increase could render the entire retail estate unviable. Licensed shops are subject to strict regulatory oversight, including compliance with the Gambling Commission’s codes of practice, mandatory staff training, and contributions to media rights and the betting levy—costs that unlicensed offshore operators do not bear.

Joanne Whittaker, Betfred’s CEO, emphasized that licensed operators are being squeezed from both ends: rising overheads due to wage and insurance hikes, and potential tax increases that disproportionately affect physical shops. She warned that Treasury officials may not fully grasp the operational realities of LBOs, stating, “We’ve got people in the Treasury who don’t understand our business”.

Betfred’s concerns echo those of other major operators. Entain, owner of Ladbrokes and Coral, has cautioned that higher taxes could force a reassessment of its retail footprint, which contributes significantly to the statutory levy supporting British racing.

Evoke, parent company of William Hill, is reportedly preparing to close up to 200 shops, while Flutter Entertainment has announced 57 closures for Paddy Power, citing broader market pressures.

The Betting and Gaming Council has argued that licensed shops play a vital role in community engagement and responsible gambling, offering safer environments compared to unregulated online platforms. Critics of the proposed tax hike warn that driving licensed operators out of business could accelerate the shift to offshore gambling, undermining consumer protections and reducing tax revenue.