Key Points
- In March, Betfred founder Fred Done transferred his property holdings to Jersey, timing the move before Britain eliminated inheritance tax exemptions for family enterprises
- The Done brothers contributed ÂŁ400 million in taxes during the previous year, establishing them as Britain’s top individual tax contributors for 2025
- Sky Bet relocated its commercial functions to Malta, with estimates suggesting annual UK tax savings of approximately ÂŁ55 million
- Britain’s Remote Gaming Duty on digital casino products will surge from 21% to 40% by April 2026, while sports wagering taxes climb from 15% to 25% in 2027
- Betfred reports that 300 of its 1,273 British betting locations operated at a loss even before the recent budget announcements
In March 2026, Fred Done, the billionaire founder of Betfred, transferred his property portfolio to Jersey. This strategic repositioning occurred just days before Chancellor Rachel Reeves eliminated inheritance tax protections for family-controlled enterprises.
Legal experts informed The Telegraph that this reorganization, which establishes ownership through a trust mechanism, could potentially reduce inheritance tax obligations by tens of millions of pounds. The relocation specifically affects Done’s real estate holdings rather than Betfred’s core betting business.
Together with his brother Peter, Done contributed ÂŁ400 million in taxes during the prior year. Gambling duties accounted for half of this substantial payment from their Betfred operations. This payment positioned them as Britain’s highest-paying individual taxpayers in 2025.
This offshore movement occurs against a backdrop of significantly increased tax burdens on British gambling companies. Chancellor Reeves’ autumn budget elevated the Remote Gaming Duty on digital casino offerings from 21% to 40%, taking effect in April 2026.
Additionally, digital sports betting taxes will climb from 15% to 25% beginning April 2027. Treasury projections indicate these modifications will generate over ÂŁ1 billion annually by 2031.
Sky Bet’s Malta Strategy Established the Precedent
Betfred isn’t the inaugural major British gambling company to pursue offshore alternatives. Sky Bet, under Flutter Entertainment’s ownership, established SBG Sports Limited in Malta during late 2025.
The organization began transferring its commercial and marketing operations to this new entity. Tax Policy Associates analysts calculate this restructuring could reduce Sky Bet’s UK tax burden by roughly ÂŁ55 million annually.
Flutter maintained the transition focused on operational effectiveness and emphasized that Sky Bet would maintain UK corporation tax payments on profits. Skeptics remained unconvinced.
Former Prime Minister Gordon Brown urged the Treasury Select Committee to examine the matter. Dan Neidle, an analyst with Tax Policy Associates, characterized the VAT structure as “improper,” though Flutter contests this assessment.
When Liberal Democrat leader Ed Davey questioned Prime Minister Keir Starmer about government intervention to prevent gambling firms from shifting profits abroad, Starmer offered no response.
Sky Bet’s marketing expenditure reached ÂŁ135 million in 2024. Betfred operates at a comparable scale. At these volumes, even marginal tax treatment differences can yield substantial savings.
Economic Strain on British Gambling Companies
Flutter anticipated a pre-mitigation earnings impact of approximately ÂŁ230 million in 2026 from these tax modifications. For 2027, that projection escalates to ÂŁ540 million.
Kevin Harrington, Flutter’s UK and Ireland chief executive, noted that Britain’s remote gaming duty now exceeds rates in countries like the Netherlands, where recent tax increases triggered growth in illegal gambling and declining government revenues.
Fred Done has dedicated the past year contending that excessive taxation of British operators will drive customers toward unregulated offshore competitors. He stated to the BBC in October that “plenty of bookmakers offshore who happen to take the bets, who don’t pay anything to this country.”
Joanne Whittaker, Betfred’s chief executive, admitted she was “stupid and naive” for believing the company’s physical betting locations would receive protection from tax increases. She noted there are “people in the Treasury who don’t understand our business.”
Betfred operates approximately 1,273 British betting shops. Done cautioned that 300 already operated at a loss before the budget announcement. He suggested a tax increase could render the entire retail division unsustainable, potentially eliminating 7,500 positions.
Britain’s physical betting shop sector has contracted for years, declining from nearly 10,000 locations in 2017 to approximately 6,668 currently. Companies have utilized digital revenues to sustain unprofitable physical shops, but the elevated tax rates on online operations threaten this business model.
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