The major UK bookmaker Betfred has warned that due to the possible gambling tax increase there’s a high chance they might be forced to close their close to 1300 betting shops.
An approximate of more than 7000 people have been faced with the possibility of losing their jobs.
Chairman and co-founder of Betfred, Fred Done, has described this as the “biggest threat” the industry has ever been faced with.
Their competitors have also agreed with the chairman’s statement.
It has been noted that the possible increase in gambling tax was originally suggested to Chancellor Rachel Reeves by Gordon Brown in order to reduce child poverty.
Brown’s original plan has been called “economically reckless” by the Betting and Gaming Council, the ones representing gambling companies.
The Council has warned of the likelihood of an increase in black market gambling.
Chairman Done has shared that a large number of his shops are constantly in the red and that an increase in tax would just make that amount increase.
Betford’s most recent annual report has shown that although the company made £1bn in profit, half of the money was used to cover operating costs.
The Industry at Risk
Many of the gambling companies have spoken up about the tax.
Estimates by the Institute for Public Policy Research (IPPR) show that a close to 50% gambling tax increase could generate close to £3,2 Billion.
Owner of the William Hill gambling company, Evoke has warned of a possible 200 shop closure pending the passing of the new gambling tax.
Rival firm of Betfred, Paddy Power announced the closure of over 50 shops across the UK and Ireland, with around 250 workers likely to lose their jobs.
Recently the betting company Entain has also announced possible closures if the new tax is passed.
Chairman Done has shared his opinion on the future of gambling:
“Slowly it will go online, but we’re talking, without tax increases, we’ve still got probably 20 years of life on the High Street”
What’s Coming Next
A need for a whole £50b for the public finances has arisen, which has placed immense pressure on Chancellor Reeves.
Many have begun to wonder what the upcoming Autumn Budget will change.
The director of Research and Policy at the IPPR,Professor Ashwin Kumar, has shared his opinion on the need for a higher tax on gambling:
“We know that most of the profits made by gambling companies come from a very small number of gamblers, many of whom are at risk of serious harm. And so we think that the duties should be higher, just like tobacco and alcohol”
Charity GambleAware have expressed a desire for “further regulation” in order to prevent gambling from harming children.