The story about iGaming product BetFred. How two brothers from a poor British family, who dropped out of school at 15, created a £10bn gambling empire.
BetFred is one of the biggest names in the gambling industry, starting from a small shop in Manchester to become a giant valued at over £10bn. The company was founded in 1967 by brothers Fred and Peter Dawn, who entered the betting business thanks to winning a bet on the 1966 World Cup.
The founding of BetFred
The story of BetFred began in 1967 when Fred and Peter Done opened their first betting shop in Ordzall, Salford, using capital generated from a winning bet on the England team winning the 1966 World Cup. This was the start of a long journey that saw BetFred grow from a small local betting shop into an international leader.
Company growth
BetFred grew aggressively through organic expansion and acquisitions. In 1998, the company acquired the Robert Walker chain, which increased the number of shops by over 100. By 2000, BetFred already had over 200 shops across the UK. In 2004, the company officially changed its name from Done Bookmakers to BetFred and launched an online platform offering sports betting, online casino and other games.
In 2013, BetFred launched its own television channel, BetFred TV, which was the first UK betting channel to be broadcast on racecourses and in the company’s shops. By 2017, the number of BetFred retail outlets had reached 1,650 following the acquisition of over 300 shops from Ladbrokes and Coral.
Expansion and sponsorship activity
In addition to the growth of its shops and online platforms, BetFred has been active in sponsorship activities, which has helped to increase brand awareness. Between 2006 and 2013, the company was the official betting partner of football club Manchester United. In 2016, BetFred sponsored the Scottish League Cup, which was renamed the BetFred Cup, and has also entered into sponsorship agreements with a number of football clubs including Bolton Wanderers and RCD Mallorca.
BetFred is also one of the largest sponsors of horse racing in the UK, supporting events at renowned racecourses such as Newmarket and Cheltenham. Between 2012 and 2015, the company was the title sponsor of the Cheltenham Gold Cup.
In 2021, BetFred partnered with media platform The Game Day to cover NFL betting and in March 2022, the company was title sponsor of the Midnight Walk charity event in Manchester, which raised over £2 million for St Ann’s Hospice. Ann’s.
Fred and Peter Done: the brothers behind BetFred
Fred and Peter Dawn, the founders of BetFred, grew up in Manchester in a modest family where they and their three brothers lived in a two-bedroom house. The brothers’ father worked in the illegal betting business and this had a strong influence on their future. Both brothers left school at the age of 15 without any qualifications to help their father with his illegal betting.
Despite their lack of formal education, the brothers soon opened their first legal bookmaker’s shop in 1967, made possible by a winning bet on the 1966 World Cup. This bet provided them with the start-up capital they needed to start the business.
Incidents and personal difficulties
The road to success was not an easy one. One of the most famous incidents occurred when Fred Dawn was attacked by a disgruntled customer. He once recounted how he was stabbed five times by an angry customer who had lost £50 on a race involving the famous jockey Lester Piggott. However, despite this tragedy, Fred continued to grow the business, strengthening BetFred’s position in the market.
Fred and Peter also run Peninsula Business Services, which provides employment law and health and safety consultancy services. This part of their business has become one of their most profitable, with over 30,000 clients and operating in countries such as the UK, Canada and Australia.
The current state of BetFred
Today, BetFred is an international betting company with over 1,600 shops across the UK and major investment in online platforms. In 2021, Fred Done stepped down as CEO and handed over the management of the company to Joanna Whittaker, who has a long history in the betting industry. Despite the leadership changes, Fred Dawn remains chairman of the company and continues to be actively involved in its strategic development.
The company also continues to expand its influence outside of the UK. In 2022, BetFred acquired a majority stake in South African betting operator LottoStar, an important step in its international expansion. This move strengthens BetFred’s position in the African betting market, providing access to a new region with high growth potential.
Challenges and prospects
Despite its successes, BetFred also faces challenges. Restrictions on FOBTs (Fixed odds betting terminals – high stakes gaming machines that, could be placed in bookmakers’ offline outlets) in the UK have put pressure on the company’s revenues. This has led to a number of shop closures in recent years. In addition, difficulties in the US market have forced BetFred to rethink its strategies. Nevertheless, the company continues to look for new opportunities and develop ‘revolutionary projects’ as mentioned in statements from its management.
BetFred remains a key player in the gambling industry and continues to make significant contributions to sporting events and charities.
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