Sports betting and gaming operator Betfred is shutting down more than 10% of its retail stores across the U.K. due to increased tax burdens on the industry.
Key Takeaways
- Betfred informed employees of the closures last week.
- Other U.K. operators have made layoffs to offset rising costs and taxes.
- Betfred exited the U.S. market last summer.
The company told employees on July 31 of plans to close 132 gaming shops, a cost of 600 jobs, according to a Sky News report.
“We have tried hard to protect all our sites and the colleagues who work in them, but the combined impact of higher employer national insurance contributions, wage inflation, increases in gambling taxes and wider economic uncertainty has left us with no choice,” Betfred chief executive Jo Whittaker told the BBC.
The shutdown leaves Betfred with approximately 1,100 retail stores.
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Tax hike
Taxes on gaming operators rose from 21% to 40% in last year’s U.K. budget. Online sportsbooks will begin paying out 25% of revenue on everything except horse racing to the government in 2027, placing even more economic uncertainty on the U.K. gaming industry.
“These are well-run shops, staffed by dedicated colleagues, and it is incredibly hard to see any of them close, but the current fiscal and regulatory environment has made it impossible to keep trading all our shops,” Whitaker said. “Our priority now is to support the colleagues affected, and to continue serving customers and communities across the rest of our estate.”
The shutdown leaves Betfred, one of the most successful gaming operators in the U.K., with roughly 1,100 retail stores. The gaming company generated a profit of nearly £129 million with turnover of £1.46 billion during a 78-week earnings period that ended March 30, 2025. Co-founders Fred and Peter Done are worth an estimated £3.6 billion, according to the BBC.
Tough times
However, Betfred isn’t the only operator making tough business decisions in a country with increased gaming taxes. Evoke plc, which owns popular European gaming brands William Hill and 888, also closed shops this year to offset costs associated with the new budget.
FanDuel parent company Flutter Entertainment said last year that it planned to close more than 50 U.K. and Ireland shops under the Paddy Power brand, costing the company hundreds of jobs.
Betfred has faced numerous financial challenges over the last few years. The gaming company has exited the U.S. market completely, beginning in 2024 and ending last summer, by closing online and retail sports betting operations in Arizona, Ohio, Nevada, Pennsylvania, and other states.
