Betfred founder warns tax rise could wipe out betting shops by 2030

Betfred founder Fred Done has warned that Britain could have no remaining high street betting shops by 2030 if gambling taxes and employment costs continue to increase.

Done said a potential doubling of Machine Games Duty (MGD) from 20% to 40% could force Betfred to close 495 shops within a year. The bookmaker estimates the closures would cost 2,575 jobs and remove approximately £67 million in annual tax payments to the Exchequer.

Machines underpin Betfred’s retail estate

Betfred currently operates approximately 1,094 betting shops across the UK. According to Done, gaming machines account for around half of the profit generated by the company’s retail estate. He argued that the machines have remained central to shop profitability. This is despite the maximum stake on fixed-odds betting terminals being reduced to £2 in 2019.

Any MGD increase would affect machines located in physical gambling premises. The measure would be separate from the Remote Gaming Duty increase introduced in April 2026. This raised the tax on online gaming profits from 21% to 40%.

Done issued his warning amid reports that Chancellor John Healey is considering increasing MGD at the next Budget. No change has yet been formally confirmed.

“I believe that by 2030 we will have no betting shops. The high street will be dead.” — Fred Done, Betfred founder

Further closures would follow 2026 cuts

Betfred announced in July that it would close 132 shops and cut more than 600 jobs. The closures begin this month. Chief executive Joanne Whittaker blamed a combination of higher employer National Insurance contributions, wage inflation, gambling taxes and wider economic uncertainty.

The company’s latest modelling suggests a 40% MGD rate would place a further 45% of its remaining estate at risk.

Sponsorship spending also under review

Done warned that further pressure on retail betting could affect industries that depend on bookmaker funding, particularly British horseracing. Betfred sponsors the five British Classic races, including the Derby, Oaks and St Leger. However, the company has yet to agree extensions to those arrangements while the tax position remains uncertain.

The bookmaker is also ending its long-running sponsorship of rugby league’s Super League, marking a wider reduction in its sports commitments. Done argued that removing licensed betting shops would not necessarily reduce gambling participation. Instead, he said some customers could move to unregulated operators, reducing both consumer protections and tax receipts.

Operators increase pressure before Budget

Betfred is not the only operator warning about the possible MGD increase. Entain, owner of Ladbrokes and Coral, previously estimated that the proposed change could add £100 million to its annual costs. Evoke has also announced the closure of 200 William Hill shops following the increase in Remote Gaming Duty.

Done rejected suggestions that the industry was exaggerating the consequences of tax rises, maintaining that the combined burden of taxation, wages and operating costs could make retail bookmaking commercially unviable before the end of the decade.