Key Moments:
- The UK retail betting sector recorded £508 million between July and September 2025, a 5% year-on-year drop
- Online gambling gross gaming yield (GGY) reached £1.42 billion, marking an 8% increase over the same period last year
- Industry leaders raised concerns about the potential impact of rumored tax hikes, with major operators warning of widespread shop closures
Decline in Retail Betting
The UK’s retail betting landscape has experienced a marked downturn, with recent figures from the UK Gambling Commission revealing substantial shrinkage in the sector. From July to September 2025, betting shops generated £508 million, reflecting a 5% decline compared to the same timeframe in the previous year. Total bets and spins for the period reached 3.1 billion, a 2% decrease. This drop aligns with patterns observed in the preceding quarter, signaling a persistent downward trend for high street bookmakers.
Anticipation is mounting ahead of Chancellor Rachel Reeves’s planned budget announcement on 26 November. Persistent speculation regarding higher gambling taxes has heightened industry anxiety. The Betting and Gaming Council, along with leading operators, has voiced urgent warnings about the consequences. Betfred has stated that adverse fiscal measures could jeopardize all 1,300 of its retail locations, while Ladbrokes Coral and William Hill are also preparing for potential widespread closures.
Political Landscape and Proposed Tax Reforms
Debate over the future of gambling taxation has emerged as a central issue. Former Prime Minister Gordon Brown has advocated for higher gambling taxes to fund the removal of the two-child cap on child benefits, an initiative backed by over 100 Labour MPs. The range of possible reforms is broad, including proposals to align betting and gaming duties at 21% and suggestions to increase Remote Gaming Duty (RGD) to 50%, Machine Games Duty (MGD) to 40-50%, and General Betting Duty (GBD) to 30%.
While the 2005 Gambling Act was introduced by Labour, the party is under significant pressure to increase funding for social programs. Meanwhile, the Conservative Party remains split between members seeking stricter reforms and those focused on safeguarding horseracing revenues.
Nigel Farage is defending the gambling industry now.
£16bn it made in profit in 2024.
Most of it taken from less than 2 million people.
It shouldn't be taxed he says, because they bring such joy and bring people together. pic.twitter.com/gIizZxUKcy
— BladeoftheSun (@BladeoftheS) November 12, 2025
Key Figures and Industry Advocacy
Nigel Farage, leader of Reform UK, has positioned himself as a defender of betting shops. At a policy event for small businesses, he described bookmakers as “one of the few surviving parts of the high street” and emphasized their social role as meeting places for those who may be otherwise isolated.
Farage cautioned that significant increases in Gaming Duty could result in the closure of “hundreds, maybe thousands” of betting shops, with negative consequences for coastal communities reliant on amusements and small-scale gaming.
Online Growth and Future Outlook
In contrast to the contractions on the high street, online gambling has continued to flourish. The online sector’s GGY rose to £1.42 billion, an 8% annual increase, while total online bets and spins reached 26.1 billion, up 3%. Online slots GGY experienced a 9% year-on-year increase to £747 million, overcoming new £2-£5 stake restrictions introduced earlier in 2025. Concurrently, long online play sessions declined by 15% to 8.6 million, possibly reflecting improved player protection measures.
Despite enhanced player safety initiatives, the persistent upward trajectory of online gambling revenue may reinforce arguments for stricter taxation. As industry participants await Reeves’s fiscal decisions, the sector’s immediate future hinges on developments within the UK’s political arena rather than on the traditional high street.
| Segment | Time Period | Revenue | Year-over-Year Change | Number of Bets/Spins |
|---|---|---|---|---|
| Retail Betting Shops | Jul-Sep 2025 | £508 million | -5% | 3.1 billion (-2%) |
| Online Gambling | Jul-Sep 2025 | £1.42 billion | +8% | 26.1 billion (+3%) |
| Online Slots | Jul-Sep 2025 | £747 million | +9% | N/A |
- Author
Daniel Williams
