Full Breakdown
Impact of Rising Gambling Taxes on the UK Betting Industry
10/19/2025, 9:01:42 PM
Decline in Revenue Amid Tax Increases
FDJ United reported a 3% year-on-year decline in revenue for the third quarter of 2025, attributing the drop primarily to higher gambling taxes in France and other European markets. The group's revenue for the quarter was €864 million ($1 billion), down from €890 million ($1.04 billion) in Q3 2024. The increase in gambling taxes, particularly in France, significantly impacted FDJ's financial performance, with French tax changes implemented on July 1 raising the levy on online betting from 54.9% to 59.3% of gross gaming revenue (GGR). This tax change alone accounted for €18 million ($21 million) of the overall €21 million ($24.5 million) tax impact during the quarter.
Concerns from Major Bookmakers
Betfred, the UK's second-largest bookmaker, has warned that proposed tax increases could lead to the closure of all its 1,300 betting shops, putting approximately 7,500 jobs at risk. Chief Executive Joanne Whittaker stated that the potential tax hikes, which could double the current rates, would threaten the viability of the retail betting sector. Whittaker emphasized that such measures could drive customers to unregulated offshore operators, ultimately reducing tax revenue and exacerbating the growth of the black market.
Fred Done, co-founder of Betfred, described the tax increases as the most significant threat he has encountered in his 57-year career in the industry. He indicated that if taxes were raised to 35% or 40%, it would eliminate profits, forcing the closure of numerous shops. The current landscape has already seen a decline in high street betting shops, with the number dropping by a third since 2017.
Broader Industry Implications
The proposed tax increases are not isolated to Betfred. Other bookmakers, including Evoke (owner of William Hill) and Flutter Entertainment (owner of Paddy Power), have also indicated potential shop closures in response to rising costs and market pressures. Paddy Power recently announced the closure of 57 betting shops across the UK and Ireland, affecting nearly 250 employees, amid concerns over the financial sustainability of high street operations.
The UK gambling sector is facing a challenging environment, with rising operational costs and increased competition from online platforms. The Betting and Gaming Council has warned that higher taxes could lead to significant job losses across the industry, with estimates suggesting that up to 46,000 jobs could be at risk if the proposed tax rates are enacted.
Official Statements & Responses
In response to the proposed tax increases, Chancellor Rachel Reeves stated, “There is a case for gambling firms paying more... they should pay their fair share of taxes.” This sentiment aligns with a campaign led by former Prime Minister Gordon Brown, advocating for increased taxation on the gambling sector to fund social initiatives.
Joanne Whittaker cautioned that raising taxes risks having “the opposite of their intended effect: reducing tax revenue, accelerating black market growth, and eliminating thousands of jobs in communities that can least afford to lose them.”
Criticism & Opposition
Critics of the proposed tax hikes argue that they could undermine the regulated betting market, pushing consumers towards illegal gambling channels. Whittaker highlighted that the average bet at Betfred is modest, and the company plays a vital role in local communities. The potential closures of betting shops could have detrimental effects on local economies, particularly in areas already struggling with economic challenges.
What's Next
As the UK government prepares for its upcoming budget, the gambling industry remains on high alert. The outcome of the proposed tax increases will significantly impact the future of high street bookmakers and the broader betting landscape in the UK.
