David Vance SubstackRead More
I’m not a gambler, apart from an annual flutter on the Grand National. I keep my cash! I remember being on holiday is Las Vegas and never once went to the tables, just no interest. But betting is big business and this is true of the UK.
Did you see that Betfred, one of Britain’s very biggest bookmakers, has warned that proposed gambling tax hikes could force the closure of all its 1,287 UK betting shops, threatening 7,500 jobs?
The company’s chief executive Joanne Whittaker has declared that the measures being considered by Chancellor Reeves would “wipe out the high-street betting shop,” creating what Betfred calls an “existential threat” to the industry.
It is rumoured that the government is weighing up raising sports betting duty from 15% to 30% and machine and online gaming duties from 20% to 50%.
Betfred’s chairman Fred Done has said there would be no profit left for operators if gambling duty rises substantially, indicating the entire retail business could shut.
He stressed that even a 5% increase could push nearly 430 shops into a loss. He claims that the company has already absorbed millions in cost increases due to minimum wage rises and higher employer National Insurance. I would say he is right.
Other major betting chains have sounded similar alarms. William Hill’s parent, Evoke, is preparing to close up to 200 shops, and Paddy Power will shut 57 locations, impacting hundreds of jobs.
Political support for the tax hikes is being led by former Prime Minister Gordon Brown. He argues that increasing gambling duties could fund the removal of the two-child benefit cap, potentially lifting 500,000 children out of poverty. (Mostly of Muslims btw) The Institute for Public Policy Research estimates the move could generate £3.2 billion annually.
Hapless Chancellor Reeves confirmed she is considering new tax measures, saying gambling firms must “pay their fair share”.
The November Budget could wreak havoc on this sector, costing jobs and accelerating the decline of the high street. You’d be mad to bet against her doing it!
