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Done family took £30m dividend from Betfred before warning of job cuts over tax rise

Betfred boss Fred Done warns up to 1,470 betting shops and 34 casinos could close if machine games duty is doubled

By LineZotpaper
Published
Updated
Read Time2 min
Sources2 outlets
The billionaire Done family has taken a £30m interim dividend from Betfred’s strong performance before warning that thousands of jobs would be lost if the government doubles tax on high-street slot machines. Chancellor John Healey is understood to be considering proposals to increase machine games duty from 20% to 40% in the upcoming budget, a move the Social Market Foundation thinktank estimates could raise up to £460m for the Treasury.

Betfred’s holding company accounts for the year to March 2026 show the Warrington-based firm won a record £996m from British punters and booked a pre-tax profit of £64m. This allowed the company to pay an interim dividend of £30m to shareholders, mainly trusts benefiting the Done family, bringing total shareholder payouts to more than £105m since 2022. The money is understood to have been reinvested into other Done family businesses, including their property portfolio.

Last month, Betfred founder Fred Done told the Financial Times he “would not wish to be reborn” in the UK, adding: “They keep saying those with the broadest shoulders should be paying more tax. Well, how broad do my shoulders have to be? We paid £400m in taxes as a family last year.” Of that sum, £54m came from machine games duty, according to the accounts.

Done was among industry signatories to a last-ditch letter to Healey on Wednesday warning that the tax increase could trigger up to 1,470 betting shop closures, 34 casino closures and 15,900 job losses. However, the company has a history of making similar threats. Since 2019, Betfred has threatened to close nearly 1,000 shops in response to higher taxes or tougher regulation, including the £2 cap on fixed-odds betting terminals. Over that period its bookmaking estate has shrunk from about 1,620 to 1,293 stores, a decrease of nearly 330, coinciding with a broader shift to online gambling.

Campaigners supporting an increase in machine games duty have focused less on bookmakers and more on high-street slot machine venues known as adult gaming centres, many of which are open 24 hours.

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Analysis

Why This Matters

  • The proposed tax increase could reshape the UK high-street gambling industry, potentially leading to significant job losses and shop closures if Betfred and others follow through on their threats.
  • The Done family’s large dividend payment before warning of closures raises questions about corporate responsibility and the timing of tax policy debates.
  • The outcome will affect Treasury revenues, with estimates suggesting up to £460m could be raised, but also risks reducing the tax base if shops close.

Background

Betfred was founded by Fred Done in 1967 and has grown into one of Britain’s largest bookmaking chains. The Done family, collectively worth about £3bn, are consistently listed among the UK’s biggest taxpayers. The company has previously threatened mass closures in response to regulatory changes, including the 2019 reduction in fixed-odds betting terminal stakes, though actual closures have been more gradual and partly driven by the shift to online gambling.

Key Perspectives

Betfred and the Done family: Argue that a doubling of machine games duty would render hundreds of bookmakers unprofitable, forcing closures and ultimately reducing the Treasury’s overall tax take. They point to the £400m in taxes already paid by the family. UK Government and Chancellor Healey: Are reportedly considering the increase to raise additional revenue for public finances, with thinktank estimates suggesting significant gains. The government has not yet confirmed the measure. Campaigners: Support the tax rise as a way to reduce problem gambling, particularly focusing on adult gaming centres (24-hour slot machine venues) rather than traditional betting shops.

What to Watch

  • The chancellor’s budget decision on whether to proceed with the machine games duty increase.
  • The actual number of shop closures Betfred announces in the months following the budget, compared to previous threats.
  • Responses from the broader gambling industry and potential legal challenges.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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