Betfred outlets could disappear from Britain's high streets if Chancellor Rachel Reeves proceeds with a potential tax assault in the November budget, the firm's co-founder and chairman has cautioned.
Fred Done, who established the enterprise in 1967 alongside his brother, described tax increases as the "biggest threat" to the sector he has witnessed during his 57 years in the business, mirroring similar alerts from other prominent gambling firms.
Reeves has previously contended that there "is a case for gambling firms paying more" stating "they should pay their fair share of taxes and we will make sure that happens".
This follows mounting pressure from former chancellor Gordon Brown who has branded the sector "undertaxed", as reported by .
The Institute for Public Policy Research (IPPR) think tank calculated that additional levies on the industry, reaching as much as 50 per cent, could generate £3bn for the Treasury.
Nevertheless, Reeves' proposal has faced vigorous opposition from the industry, who have branded the decision "economically reckless" and harmful to their operations.
The development comes as the Gambling Commission and Treasury examine stricter regulations and charges for the gambling sector, which has already been severely affected by the £2 stake limit on fixed-odds betting terminals (FOBTs).
Earlier this month, William Hill owner Evoke announced that up to 200 of its retail premises could shut their doors if the industry faces higher taxation. Mr Done reinforced this concern, informing the BBC he would likewise be forced to shutter high street outlets.
He stated: "It [tax] doesn't even need to go up to 50 per cent.
"If it went up anywhere like 40 per cent or even 35 per cent there is no profit in the business.
"We would have to close it down."
He revealed the firm could also axe roughly 7,500 positions should taxes rise, noting 300 outlets were "currently losing money" and a further 5 per cent hike on gambling levies would push that figure to 430.
Mr Done also acknowledged the recent rise in employer National Insurance contributions and minimum wage has saddled the company with an extra £20m in expenses.
Whilst the business generated nearly £1bn in turnover in its latest annual figures, operating profit reached merely £500,000.
Mr Done recognised that punters are also progressively shifting online, rendering shop closures unavoidable.
Competitor Paddy Power announced it would shut 57 outlets across the º£½ÇÊÓƵ and Ireland last week, blaming mounting cost pressures and difficult market circumstances.
Mr Done remarked: "Slowly it will go online, but we're talking, without tax increases, we've still got 20 years of life on the high street."
He also conceded that the escalating expenses affecting gambling operators will harm the sector and push more punters to wager "offshore" with bookmakers who "don't pay anything to this country".
