Paddy Power Founder Rebuts Betfred's 40% Tax Warning as 495 Shop Closures Loom

1 articles · Updated · Financial Times · Sep 24

Stewart Kenny, who co-founded Paddy Power, said Fred Done was using “familiar scaremongering” by warning a proposed rise in machine gaming duty to 40% would devastate bookmakers.
Done said Betfred would have to shut 495 shops, cut 2,575 jobs and lose £67 million in tax receipts if the Treasury doubles the duty, arguing higher taxes and wage costs would make many outlets unviable.
Kenny countered that bookmakers made similar claims before curbs on fixed-odds betting terminals and the predicted damage did not materialize; he argued higher taxes should target more harmful machines rather than lower-harm sports betting.
Betfred has already announced 132 shop closures after higher online gaming taxes, and Done said the pressure has also ended its Super League sponsorship and delayed a horseracing renewal.
The clash highlights a broader industry split over whether gambling taxes should focus on slots and online gaming or be treated as a single business burden affecting jobs, investment and high-street shops.