Founder Fred Done has warned that Betfred could end its sponsorship of British racing's five Classics if machine games duty (MGD) is increased, adding to industry concerns over the impact of higher gambling taxes.
Betfred currently sponsors the Derby, Oaks, 1,000 Guineas, 2,000 Guineas and St Leger. The company has a verbal agreement to extend those sponsorships for another three years, but Done said it could withdraw if the next Budget includes a substantial MGD increase.
“We have a verbal agreement to renew our sponsorship of the British Classic horse races for a further three years – but if October’s budget goes the wrong way on MGD, we will have to walk away from those, too,” Done wrote in The Sunday Times.
According to Betfred's modelling, doubling MGD to 40% would lead to the closure of 495 shops, representing 45% of its estate, and the loss of 2,475 retail jobs. Done estimated those shops currently contribute £66.8m (US$89.4m) in taxes and £15.8m annually to horseracing.
The warning comes as Betfred is already reducing its retail footprint. The operator recently announced plans to close 132 UK shops and cut more than 600 jobs, citing gambling tax increases, higher National Insurance contributions and other operating pressures.
Other operators have raised similar concerns.
Entain announced a separate restructuring in July affecting approximately 500 roles. The Ladbrokes and Coral operator has estimated that a further increase in MGD to 40% would add around £100m to the annual cost of its UK retail business.
Industry modelling has suggested the same rate could contribute to as many as 1,470 betting shop closures and 15,900 job losses across the sector, although these figures represent industry projections rather than confirmed outcomes.
Betfred's warning also highlights the potential effect on racing funding beyond shop closures, with sponsorship and other financial contributions potentially affected.
The company has been a significant UK taxpayer, with Fred and Peter Done recently topping The Sunday Times Tax List after paying £400.1m over the past year.
Betfred became the first company to sponsor all five British Classics in 2024
