Key Highlights
Contents
- Betfred’s billionaire founder Fred Done relocated his property holdings to Jersey weeks before the UK eliminated inheritance tax relief for family enterprises
- The Done brothers contributed £400 million in taxes during the previous year, establishing them as Britain’s top individual taxpayers for 2025
- Sky Bet’s relocation of commercial functions to Malta reportedly reduces annual UK tax obligations by approximately £55 million
- The government will increase Remote Gaming Duty on digital casino products from 21% to 40% by April 2026, while sports wagering duty climbs from 15% to 25% in 2027
- Nearly a quarter of Betfred’s 1,273 high street locations operated at a loss even before the recent budget announcements
In March 2026, billionaire gambling entrepreneur Fred Done transferred his property portfolio to Jersey. This strategic relocation occurred just days before Chancellor Rachel Reeves announced the elimination of inheritance tax protections for family-controlled enterprises.
Legal experts informed The Telegraph that this corporate restructuring, which involves placing assets within a trust structure, may reduce inheritance tax liabilities by tens of millions of pounds. The relocation specifically affects Done’s real estate investments, not Betfred’s core betting operations.
Together with his brother Peter, Done remitted £400 million to the Treasury during the previous fiscal year. Gambling duties accounted for half of this substantial payment. This contribution positioned them as Britain’s highest-paying individual taxpayers for 2025.
The restructuring occurs against a backdrop of escalating fiscal pressure on Britain’s gambling sector. Reeves’ autumn budget substantially increased the Remote Gaming Duty applicable to digital casino offerings from 21% to 40%, taking effect in April 2026.
Additionally, online sports wagering duties will climb from 15% to 25% beginning April 2027. Treasury forecasts suggest these modifications will generate over £1 billion annually by 2031.
Sky Bet’s Relocation Establishes Industry Precedent
Betfred isn’t the pioneering major British gambling enterprise to pursue offshore arrangements. Sky Bet, under Flutter Entertainment’s ownership, established SBG Sports Limited in Malta during late 2025.
The organization subsequently transferred its commercial and promotional operations to this Mediterranean jurisdiction. Tax Policy Associates researchers calculate this restructuring could reduce Sky Bet’s UK tax exposure by roughly £55 million annually.
Flutter maintained the relocation addresses operational effectiveness while Sky Bet continues remitting UK corporation tax on earnings. Skeptics remained unconvinced by this explanation.
Former Prime Minister Gordon Brown urged the Treasury Select Committee to examine the arrangement. Tax Policy Associates analyst Dan Neidle characterized the VAT structure as “improper”—a designation Flutter contests.
When Liberal Democrat leader Ed Davey questioned Prime Minister Keir Starmer about potential government intervention to prevent gambling enterprises from shifting profits overseas, Starmer offered no substantive response.
Sky Bet allocated £135 million toward marketing during 2024. Betfred operates at comparable scale. At such magnitude, seemingly modest tax treatment variations translate into substantial financial advantages.
Mounting Economic Strain on British Operators
Flutter forecasted approximately £230 million in pre-adjustment earnings impact during 2026 attributable to the tax modifications. This figure escalates to £540 million in 2027.
Flutter’s UK and Ireland chief executive Kevin Harrington noted that Britain’s remote gaming duty now exceeds jurisdictions including the Netherlands, where recent tax elevation prompted increased illegal gambling activity and diminished government revenue.
Fred Done has consistently argued throughout the past year that excessive taxation of British operators will redirect consumers toward unregulated offshore alternatives. He informed the BBC in October that “plenty of bookmakers offshore who happen to take the bets, who don’t pay anything to this country” exist.
Betfred chief executive Joanne Whittaker acknowledged being “stupid and naive” in expecting the company’s physical betting locations to escape tax increases. She criticized “people in the Treasury who don’t understand our business.”
Betfred currently operates approximately 1,273 British betting establishments. Done cautioned that 300 locations already operated unprofitably before the budget announcement. He suggested further tax elevation could render the entire retail division unsustainable, potentially eliminating 7,500 positions.
Britain’s high street betting industry has experienced prolonged contraction, declining from nearly 10,000 establishments in 2017 to approximately 6,668 presently. Operators have utilized digital revenues to subsidize unprofitable physical locations, but the elevated digital operation tax rates jeopardize this cross-subsidy model.
