Betfred Owner Threatens to End Rugby League and Racing Sponsorships Over Potential Budget Tax Hikes

Fred Done, the billionaire owner of British bookmaker Betfred, has announced plans to cease sponsoring rugby league and potentially withdraw support for horse racing if upcoming government budget measures include increased taxes on the gambling industry. Done stated that ending Betfred's nearly decade-long sponsorship of rugby league, a sport with significant ties to Prime Minister Andy Burnham, would be heartbreaking.

Burnham, a vocal supporter of rugby league, holds season tickets for Leigh Leopards and has previously donated to grassroots clubs. He also served as president of the Rugby Football League from 2018 to 2019.

Done's warning comes in response to potential tax increases on the gambling sector. He cited a previous move by former Chancellor Rachel Reeves, who nearly doubled online gaming duty in the last budget. "I'm not asking anyone to feel sorry for bookmakers," Done wrote in The Sunday Times. "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, [and] kill horseracing."

Done, alongside his brother Peter, was recognized as a top taxpayer, contributing £400 million to the Exchequer. His comments echo concerns raised by other high-profile taxpayers who have reportedly relocated their assets or businesses amid potential tax changes.

Prime Minister Burnham has previously identified grassroots rugby league and sports in general as significant priorities during his tenure. However, Done's appeal adds pressure on the government's taxation decisions. The situation is further complicated by former Labour Prime Minister Gordon Brown's recent call for increased machine gaming duty, funds he suggested could be used for energy bill relief.

Should Prime Minister Burnham and Chancellor John Healey proceed with raising machine gaming duty, Done warned of severe consequences for Betfred, including the closure of 495 shops and the elimination of 2,475 jobs.

Betfred's involvement in horse racing is also at risk. The company is the principal sponsor of prestigious flat racing events such as the Derby, the Oaks, the St Leger, the 2,000 Guineas, and the 1,000 Guineas. Done indicated that while a verbal agreement to renew the sponsorship for three more years was in place, a negative outcome in the upcoming budget regarding machine gaming duty could force Betfred to withdraw from these commitments as well.

The Treasury stated that the Chancellor remains focused on priorities such as providing relief to families and businesses, supporting jobs, and driving economic growth, while adhering to fiscal rules.