Key Points
- Fred Done transferred his property portfolio to Jersey this March, just before Britain eliminated inheritance tax breaks for family enterprises
- The Done brothers contributed £400 million in taxes during the last fiscal year, ranking as Britain’s top individual taxpayers for 2025
- Sky Bet has already relocated core operations to Malta, potentially reducing UK tax obligations by approximately £55 million annually
- Online casino Remote Gaming Duty will surge from 21% to 40% by April 2026, while sports wagering taxes climb from 15% to 25% in 2027
- Among Betfred’s 1,273 British betting locations, roughly 300 were operating at a loss even before recent budget announcements
Billionaire gambling entrepreneur Fred Done transferred ownership of his property portfolio to Jersey this March. The strategic relocation occurred fewer than fourteen days before Chancellor Rachel Reeves abolished inheritance tax protections for family-controlled enterprises.
Legal experts informed The Telegraph that this restructuring, which establishes ownership through a trust mechanism, may shield tens of millions from future inheritance tax obligations. The relocation specifically affects Done’s real estate holdings rather than Betfred’s core gambling business.
During the previous fiscal year, Fred and Peter Done collectively paid £400 million to the British treasury. Gambling duties on their Betfred operations accounted for half of this substantial sum, establishing them as Britain’s highest-contributing individual taxpayers in 2025.
This offshore shift unfolds against a backdrop of dramatically increased fiscal pressure on UK gambling enterprises. Chancellor Reeves’ autumn budget elevated Remote Gaming Duty on digital casino products from 21% to 40%, with implementation scheduled for April 2026.
Taxation on online sports wagering will similarly escalate from 15% to 25% beginning April 2027. Government projections suggest these modifications will generate over £1 billion in annual revenue by 2031.
Malta Emerges as Alternative Hub for Sky Bet
Betfred isn’t pioneering the offshore strategy among prominent British gambling firms. Flutter Entertainment’s Sky Bet established SBG Sports Limited in Malta during late 2025.
The operator subsequently began transferring commercial and marketing operations to the Mediterranean island nation. Research from Tax Policy Associates indicates Sky Bet could reduce UK tax exposure by roughly £55 million annually through this restructuring.
Flutter maintains the relocation serves operational efficiency objectives and that Sky Bet will continue remitting UK corporation tax on earnings. Skeptics remain unconvinced by this explanation.
Former Prime Minister Gordon Brown urged the Treasury Select Committee to examine the arrangement. Dan Neidle, an analyst at Tax Policy Associates, characterized the VAT structure as “improper,” though Flutter rejects this assessment.
When Liberal Democrat leader Ed Davey questioned Prime Minister Keir Starmer about government plans to prevent gambling operators from shifting profits overseas, Starmer offered no substantive response.
Sky Bet allocated £135 million toward marketing during 2024. As a similarly-scaled competitor, Betfred operates at a level where even marginal tax advantages translate into substantial financial savings.
Mounting Economic Strain on British Betting Companies
Flutter anticipates approximately £230 million in pre-mitigation earnings impact during 2026 stemming from the tax adjustments. This figure escalates to £540 million in 2027.
Kevin Harrington, Flutter’s UK and Ireland chief executive, noted that Britain’s remote gaming duty now exceeds rates in jurisdictions like the Netherlands, where a recent tax increase triggered expanded illegal gambling activity and diminished government revenues.
Fred Done has devoted the past twelve months to arguing that excessive taxation on UK operators will redirect consumers toward unregulated offshore platforms. He explained to the BBC in October that “plenty of bookmakers offshore who happen to take the bets, who don’t pay anything to this country.”
Betfred CEO Joanne Whittaker admitted she was “stupid and naive” for assuming the company’s retail betting locations would receive protection from tax increases. She criticized “people in the Treasury who don’t understand our business.”
Betfred maintains approximately 1,273 retail betting shops across Britain. Done cautioned that 300 locations were already unprofitable before the budget announcement. He suggested additional taxation could render the entire retail division unsustainable, potentially eliminating 7,500 positions.
Britain’s high street betting sector has experienced prolonged contraction, declining from nearly 10,000 locations in 2017 to approximately 6,668 currently. Operators have traditionally leveraged online revenues to subsidize underperforming retail outlets, but escalating digital taxation undermines this cross-subsidy model.
