Two Betfred branches in Aberdeen could close permanently if Chancellor Rachel Reeves increases taxes on gambling firms in her upcoming Budget, the company’s chairman has warned.
Fred Done, who co-founded Betfred in 1967, told the BBC that all 1,287 of the company’s High Street shops — including Westhill and Berryden — could disappear if taxes rise.
“If it went up to anywhere like 40% or even 35% there is no profit in the business,” he said.
“We would have to close it down. I’m talking job losses. We’re talking probably 7,500.”
The Chancellor has been urged by former Prime Minister Gordon Brown to raise taxes on betting companies, potentially up to 50%, to fund child poverty programmes.
Reeves said recently: “I do think there is a case for gambling firms paying more… they should pay their fair share of taxes and we will make sure that happens.”
Mr Done said recent increases in National Insurance and the minimum wage had already added £20m to Betfred’s costs, and warned that higher gambling taxes could push hundreds more shops into loss-making territory. “Once the [UK] industry is closed down, it’s gone,” he said. “People will still bet, but they’ll bet offshore with it. There’s plenty of bookmakers offshore who happen to take the bets, who don’t pay anything to this country.”
The Betting and Gaming Council, which represents the industry, has called proposed tax rises “economically reckless”, warning they could drive gamblers towards unregulated offshore markets. Rival firm Paddy Power last week announced 57 shop closures, citing higher costs and weaker trading conditions.