The Done family, owners of the Betfred gambling empire, withdrew a £30 million dividend prior to issuing a warning about potential job cuts and the closure of hundreds of betting shops if the government proceeds with plans to double the machine games duty. This warning comes as Chancellor John Healey is considering proposals that could significantly impact the gambling industry.
Context
The Social Market Foundation think tank has suggested that doubling the machine games duty could generate up to £460 million for the government. However, industry leaders, including Fred Done, the founder of Betfred, argue that such a tax increase would lead to widespread closures in the bookmaking and casino sectors.
On Wednesday, Done was among several industry representatives who signed a letter to Healey, cautioning that the proposed policy could result in:
- Up to 1,470 betting shop closures
- 34 casino closures
- 15,900 job losses
This letter was first reported by Sky News and coincided with the filing of Betfred's financial accounts at Companies House.
Developments
According to the accounts, Betfred's holding company reported a record £996 million in revenue from British punters for the year ending March 2026, with a pre-tax profit of £64 million. This strong financial performance enabled the company to distribute an interim dividend of £30 million to its shareholders, primarily trusts benefiting the Done family. Since 2022, total shareholder payouts have exceeded £105 million.
