Bet 365’s Chief Executive Operator, Denise Coates, is the UK’s Highest Taxpayer
In just twelve months the Staffordshire-based gambling giant has contributed £481.7 million to the public purse topping the list of highest taxpayers in the country ahead of hedge funds and retailers. Coates is the number one with hedge fund manager Chris Rokos in second and JD Sports’ Stephen Rubin in third.
Denise Coates of Bet 365 is UK’s highest taxpayer. ©Gerd Altmann/Pixabay
Who pays their taxes?
This is the third year in a row that the UK’s 17th richest person has been the UK’s highest taxpayer. According to The Times Tax list. The list details the eleven individuals and families whose tax contributions to HMRC have been in excess of £100 million. In 2020 the Coates family paid, even more, when their tax bill was a staggering £573 million. However, the amount paid in 2021 is still £180 million more than anyone else. Chris Rokos, the hedge fund manager paid £300 million and Steve Rubin £256 million. Of the eleven names listed two derive their wealth from the gambling industry with Fred and Peter Done of Betfred contributing £169.8 million to The Exchequer. These individuals or families paid over £2052.5 million in tax in 2021, and the gambling industry is responsible for 35% of that revenue.
And who isn’t in the tax list?
The interesting take on this is that the top eleven taxpayers are not the eleven richest families or individuals in the country. In fact, only the Weston family, who are the owners of Selfridges, are anywhere near the top coming in at number ten in the wealth list. It is notable that some of the richest people don’t pay any tax at all. According to the Sunday Times Rich List, Sir Len Blavatnikk is the richest person in the UK. He is not included in the tax list even though he has a fortune estimated to be worth £23 billion. The Ukrainian-born businessman made his money in the former Soviet Union from energy and aluminum.
Who is Denise Coates?
Denise Coates father ran a chain of betting shops but it was her and her brother John who diversified into the online betting world which changed the fortunes of the family and catapulted them towards serious wealth. She keeps herself out of the media eye and rarely gives interviews. For International Women’s Day in 2019, she is quoted as saying:
“The more grateful we feel, the more things we receive to feel grateful for.”
She certainly has a lot to be grateful for as do her employees. The business was set up in Stoke-on-Trent, a community ravaged by unemployment following the almost total collapse of the potteries which had previously sustained it. The betting shops were mortgaged and all the money was used to set up the online business. In doing so 5,000 jobs have been created in the Staffordshire town.
Humble Beginnings
The business started from a portacabin in a carpark 22 years ago. It now has 93 million customers who can place a bet at any time they choose – 365 days a year. The 356.com domain name was purchased by Coates on eBay for $25,000. The gamble of the millennium has paid off for Coates. Online gaming and gambling can be done discreetly, from anywhere on a smartphone or laptop. The games are cheerful looking and include poker, bingo, slots, sports betting, and even esports. Critics of the gambling industry say that it is too easy for gamblers to access betting platforms and that stricter legislation is required to assist the growing number of problem gamblers. The long-promised review has been delayed until sometime this year.
Largest annual pay packet
Bet365 is privately owned and the family – which includes her brother John and her husband Richard Smith – control 93% of the shares. Coates graduated from Sheffield University with a first-class degree in econometrics. Econometrics is the study of statistical methods to economic data which probably has given her excellent insights into making a successful, data-driven business. Initially, she expanded the chain of shops to 50 locations, but it was the move into online which was the game-changer. She paid herself £421 million last year – which is the largest annual pay packet that a British corporation has ever paid.
Giving Back
Coates was awarded a CBE back in 2012 for services to the community and business. She is regarded as ‘patron of the potteries’ because she chose to keep the business in her hometown and create well-paid jobs. £Bet 365 is the largest private-sector employer in Stoke on Trent. The jobs that were lost due to the decline in the potteries, manufacturing, and mining were highly skilled manual jobs. Coates now employs many graduates and the average annual salary for her employees is over £51,000. While there is still a huge differential between the bosses and the staff, there is no denying that the jobs that have been created are high value and £20,000 higher than the UK median salary for a full-time position.
Circular Economy
The tax revenues generated by these companies will be a very welcome contribution to The Exchequer, where Chancellor Rishi Sunak has a good deal of juggling to do following the outflow of money due to Covid 19 and schemes that were put in place to avoid mass unemployment and support businesses. There is a rather neat correlation that a sector that did well during lockdowns during the pandemic, while people had more time on their hands, is contributing so much back in terms of revenues.
