The Done family withdrew a £30m dividend from Betfred, their gambling business, before warning the government that they would close hundreds of betting shops and cut jobs if the chancellor doubles tax on high-street slot machines.
Chancellor John Healey is considering proposals to double machine games duty in the upcoming budget. The Social Market Foundation thinktank has said such a move could raise up to £460m for the state.
The timing raises questions about the Done family's financial position and the credibility of their job-cut warnings. The family extracted substantial shareholder returns from Betfred before making public statements about the company's inability to absorb higher taxes.
The proposed duty increase on gaming machines is one of several tax measures under consideration as the government seeks new revenue. Betting shops and arcade operators have lobbied heavily against the rise, arguing that higher taxes would make their operations unviable and force closures.
The Done family's statement that they would shut hundreds of bookies if the tax increases suggests they view the duty rise as incompatible with Betfred's profitability. The £30m dividend extraction, however, indicates the company generated sufficient cash to distribute to owners while operating at what the family now describes as unsustainable tax levels.