Betfred Paid £30 Million Dividend Before Warning of 495 Shop Closures

Betfred paid a £30 million interim dividend before warning of shop closures, The Guardian reported. Shareholder payouts since 2022 exceeded £105 million. 

The payment comes as founder Fred Done campaigns against a potential increase in the standard rate of Machine Games Duty from 20% to 40%. He has warned that the change would force Betfred to close 495 betting shops and cut approximately 2,500 jobs.

The tax increase remains a proposal under consideration ahead of the October 28, 2026 Budget. It has not been confirmed as an enacted measure or a change taking effect on that date. 

Betfred’s latest financial results provide the backdrop to the dispute. For the 52 weeks ended March 29, 2026, the group reported turnover of £995.6 million, pre-tax profit of £64 million and profit after tax of £39.6 million.

Retail remained its largest business segment, generating £544 million, or approximately 55% of turnover, compared with £451.7 million online. The accounts were filed at Companies House on October 9.

Betfred Links Closure Warning to Higher Machine Duty

Done’s warning concerns the profitability of individual shops under a higher tax rate. In comments reported by the Racing Post in September, he said Betfred’s modelling indicated that doubling Machine Games Duty would require 495 closures.

He also warned of losses to tax receipts and horseracing funding, and described a substantial increase as “a raid by the new morality police”. These are the founder’s assessment and characterisation of the proposal, rather than confirmed outcomes.

Machine Games Duty applies to net machine takings, meaning money charged to play minus winnings paid out. HMRC currently lists a standard rate of 20%, alongside a lower rate of 5% and a higher rate of 25%, depending on stakes and prizes. The proposed 40% rate therefore concerns a specific gambling duty, rather than a tax on Betfred’s entire turnover or net profit. 

Betfred recorded £54.5 million in machine gaming duty in its latest reporting period. However, its current group profit does not establish how each shop would perform after a tax change. Equally, a closure forecast does not demonstrate that every identified outlet will ultimately shut.

The year-end estate comprised 1,293 betting shops, down from 1,351 a year earlier. Those figures predate a separate consultation announced in July covering 132 shops and more than 600 jobs. 

Industry Letter Forecasts Up to 1,470 Betting Shop Closures

Betfred’s warning forms part of a wider lobbying campaign. In a joint letter reported by the Racing Post on October 14, major gambling companies urged the government to rule out further gambling tax increases.

The letter cited EY analysis commissioned by the Betting and Gaming Council. It estimated that a 40% Machine Games Duty rate could lead to between 690 and 1,470 betting shop closures, 28 to 34 casino closures and 11,600 to 15,900 job losses.

Those ranges are projections commissioned by the industry trade body. They should be distinguished from closure decisions already taken by individual businesses.

The signatories also asked the government to pause the separate increase in remote General Betting Duty scheduled for April 2027. That broadens the dispute beyond gaming machines to the cumulative effect of gambling taxation on operators. 

The October 28 Budget is the next decision point. Any announcement will need to establish the rate, scope and implementation timetable before the financial impact on Betfred and other operators can be assessed against their warnings.