John Lewis
Letter to Chancellor Details Industry Risk
Betfred chief executive Fred Done signed a letter on Wednesday warning that the UK government’s proposal to double the machine games duty could lead to widespread closures across the betting industry. The correspondence, addressed to Chancellor of the Exchequer John Healey, stated that the policy change could result in the closure of up to 1,470 betting shops and 34 casinos. Done also indicated that 15,900 jobs would be at risk if the proposed tax increase proceeds.
The proposal would raise the duty on machine games from 20% to 40%. The Social Market Foundation think tank estimates that this specific tax move could generate £460 million (approximately $610 million) in new revenue for the government. In his letter, Done framed the tax hike as a direct threat to the viability of physical betting venues, highlighting the economic impact on operators maintaining a high-street presence.
Operator Cites Fiscal Pressure for Recent Closures
Betfred has already adjusted its operations in response to the current regulatory and fiscal environment. Earlier this summer, the company closed 132 shops, citing upcoming tax increases as the primary reason for the reductions. Since 2019, Betfred has threatened to shut nearly 1,000 betting shops in response to a combination of tax increases and tighter regulation.
These actions have significantly reduced the company’s physical footprint. Betfred’s betting shop portfolio has decreased from around 1,620 outlets in 2019 to 1,293 currently, a reduction of just over 20%. The company also ended its partnership with the rugby Super League last month, explicitly citing increasing taxes as the reason for the decision.
Dividend Payouts Amid Tax Debate
The warning from the Betfred chief comes as the company reported strong financial performance. In the financial year ended March 2026, Betfred generated a record £996 million (over $1.3 billion) in revenue from British punters. The company recorded a pre-tax profit of £64 million (about $85 million) for the same period.
Despite the warnings about industry viability, Betfred paid shareholders an interim dividend of £30 million ($40 million). The primary shareholders of Betfred are a series of trusts benefiting the Done family. Total shareholder payouts since 2022 amount to more than £105 million (about $139 million).
Done Family Wealth and Tax Contributions
The Done family holds an estimated combined wealth of £3 billion (about $4 billion). According to the Sunday Times Tax List, the family is described as the UK’s biggest taxpayers. They contributed an estimated £400 million (around $530 million) in tax last year.
Of that total, £54 million (about $72 million) was attributable to machine games duty. Done addressed this point in his letter, stating: “while there were repeated calls for those with the broadest shoulders to pay more tax, it was unclear how much more the Done family was expected to contribute.” The letter serves as a formal objection to the proposed budget measures, positioning the operator’s financial health against the government’s revenue targets.
Why It Matters
The proposed doubling of machine games duty directly impacts the profitability of UK betting shop operators. If implemented, the tax change could force the closure of nearly 1,500 venues and eliminate approximately 16,000 jobs. This development affects the sustainability of physical gambling venues and signals a potential shift in how operators allocate resources between high-street locations and digital platforms.
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