Despite extending its sponsorship of the rugby Super League a few years ago, Betfred is now preparing to axe this tie-up. The sports betting operator cited the ongoing tax pressures and wage inflation as its reason to end this agreement.
Betfred Took the Decision with a “Very Heavy Heart”
Betfred first became the Super League’s title sponsor in 2017. Since then, the company has had an “intense love affair” with the sport, sponsoring the Challenge Cup and becoming a principal partner of England men’s, women’s and wheelchair teams.
The original Super League deal was renewed in 2023, when the company reiterated its commitment to supporting the sport. Unfortunately, this commitment is now coming to an end due to the continued tax burdens in the UK.
Betfred’s owner, Fred Done, commented on the matter, saying that his team was ending the arrangement with the Super League with a very heavy heart. However, he emphasized that the company had to reduce its expenses due to the latest tax hike in the UK.
For reference, the Autumn Budget approved an increase in gaming taxes, raising the general betting duty to 25% and almost doubling the remote gaming duty to 40%. This tax rate came into force in April this year, sending shockwaves across the gaming industry and forcing multiple businesses to scale back their operations.
Speaking about the decision to cut the Super League deal, Done blamed what he called “last year’s extremely disappointing Budget.” In addition, he said that wage inflation has led to further challenges, forcing the company to reduce its overall UK presence.
It should be noted that Betfred closed 132 shops in July, citing similar reasons as those associated with its decision to end the Super League deal.
In the meantime, Rhodri Jones, interim CEO of the Rugby Football League, thanked Betfred for its support over the years.
Other Operators Are Also Experiencing Struggles
Betfred’s decision to close shops and end partnerships is not unique and follows a broader pattern in the UK. Entain, for example, recently announced plans to end roughly 400 customer care jobs. That company also justified the decision with the tax hike.
Previously, bet365 announced similar plans, saying that it would end up to 340 jobs. Before that, Paddy Power, which was also affected by the taxation changes, confirmed that it had initiated a review that could cause it to shed up to 100 shops, impacting as many as 400 jobs.