Horse racing is in peril after the UK’s highest taxpayer threatened to pull sponsorship of all five British ‘Classics’ – including the Derby and St Leger.
Betfred founder Fred Done has begged Prime Minister Andy Burnham and Chancellor John Healey not to hit bookmakers with more tax hikes in the Budget.
The Chancellor is reportedly exploring the possibility of slapping a further levy on betting shops. His predecessor Rachel Reeves raised gaming taxes from 21% to 40%. Though she did not tax racing directly – thanks to a Daily Star campaign – the move still put the squeeze on bookies who help fund the sport of kings.
It led to betting shop closures, race sponsorship withdrawals and drove punters into the hands of illegal black market bookmakers. Recent Treasury chat has led Done to predict there will be no high street betting shops by 2030.
Done has already earmarked 132 Betfred shops for closure – which he said was like ‘killing your own babies’. He said if rates go up again he will be forced to shut another 495 at a cost of 2,575 jobs and £67m in tax revenue.
Done, 83, set up his first betting shop in Prime Minister Andy Burnham’s old territory Manchester on the back of England’s 1966 World Cup win and grew his empire over the next 60 years to 1,350 sites.
Done said: “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 machine games duty we will have to walk away from those too.
“I’m not asking anyone to feel sorry for bookmakers. But I am asking the Government to open their eyes. You can’t squeeze any more out of this industry. Every penny more of tax will kill investment, kill jobs, kill horse racing. The average bet placed in one of our shops is £10.87. Our customers are not high rollers or heavy gamblers.
“They are working people who enjoy a bet and a cup of tea with their friends. After visiting one of our shops, they go on to spend money in neighbouring shops.
“Every shop we close leaves a hole in its community. I get such emotional letters from former managers. That is why it was so upsetting to see betting shops grouped with vape shops and ‘rogue operators’ in recent government commentary.”
Done is Britain’s top taxpayer handing over £400.1m-a-year to the Treasury. His cash has helped preserve British horse racing which dates back to 1174.
A Jockey Club spokesman said Betfred were ‘fantastic and passionate supporters’ of Classic races. “We know that Fred would be heartbroken if their sponsorship of them were to come to an end and we have been having positive conversations around extending our partnership with them,” they added.