Bookmaker Threatens to End Rugby League and Racing Sponsorship Over Potential Tax Hikes
Betfred owner Fred Done warns of job losses and reduced investment if gambling taxes are increased, impacting a sport favored by Prime Minister Andy Burnham.
Fred Done, owner of the British bookmaker Betfred, has announced his company will cease its sponsorship of rugby league and is considering withdrawing financial support from horseracing if proposed tax increases on the gambling industry are implemented. The potential withdrawal of Betfred's backing comes after nearly a decade of sponsorship for rugby league, a sport with known ties to Prime Minister Andy Burnham.
Burnham, a vocal supporter of rugby league, holds season tickets for Leigh Leopards and previously donated to the grassroots Ashton Bears club. His involvement with the sport also included a stint as president of the Rugby Football League from 2018 to 2019.
Done's concerns are directed at potential changes to taxation, specifically mentioning an increase in machine gaming duty. He stated that further tax burdens on the industry would stifle investment, lead to job cuts, and negatively impact horseracing. Done indicated that if the upcoming Budget, led by Chancellor John Healey, includes unfavorable tax adjustments, Betfred might close 495 shops, resulting in the loss of 2,475 jobs.
The company is also a primary sponsor of prestigious horseracing events, including the Derby, the Oaks, the St Leger, the 2,000 Guineas, and the 1,000 Guineas. Done noted a verbal agreement to renew sponsorship for these flat racing competitions for another three years, but this commitment is contingent on the Budget's outcome regarding machine gaming duty. He warned that Betfred would withdraw from these sponsorships as well if the tax policies are not to their satisfaction.
This situation arises amidst broader discussions on taxation, with former Labour Prime Minister Gordon Brown advocating for increased machine gaming duty to fund support for households facing rising energy costs. Done's appeal to the government aims to prevent what he describes as a "bloodbath" for the betting industry.
A Treasury spokesperson stated that the Chancellor is focused on priorities such as providing relief to families and businesses, supporting jobs, and driving economic growth, while adhering to fiscal rules. Fred Done and his brother Peter were identified as significant taxpayers, having contributed £400 million to the Exchequer in the past year.