Key Moments:
- More than 100 Labour MPs have urged Chancellor Rachel Reeves to significantly raise gambling taxes in the upcoming November budget.
- Analysts warn that the proposed tax hikes could lead to the closure of thousands of betting shops and put up to 30,000 jobs at risk.
- The Betting and Gaming Council (BGC) claims the sector contributes £6.8 billion annually to the UK economy and employs 46,000 people.
Politicians Push for Steep Gambling Tax Increases
High street betting shops in the UK are facing an uncertain future as political pressure mounts for higher gambling taxes. More than 100 Labour MPs have called on Chancellor Rachel Reeves to double several industry taxes in November’s budget. The plan includes lifting online gambling duty from 21 percent to 50 percent, increasing betting duty from 15 percent to 30 percent, and raising machine games duty from 20 percent to 50 percent. Analysts have cautioned that, if adopted, these hikes could result in the closure of thousands of shops and jeopardize tens of thousands of jobs.
Industry Impact: Economic Contributions and Job Numbers
The Betting and Gaming Council (BGC) continues to argue that betting shops play a crucial role in supporting the UK’s high streets, asserting that the industry adds £6.8 billion to the economy each year. However, doubts remain regarding the actual scope of employment, as Department for Digital, Culture, Media & Sport (DCMS) figures show 75,000 workers across the gambling sector, whereas the BGC claims that 46,000 work in betting shops alone. According to the BGC, these shops pay £60 million in business rates to local councils and contribute £1 billion in taxes to the Treasury annually.
The following table summarizes the proposed tax changes:
| Current Duty Rate | Proposed Duty Rate |
|---|---|
| Online Gambling Duty: 21% | 50% |
| Betting Duty: 15% | 30% |
| Machine Games Duty: 20% | 50% |
Despite the challenging environment, some operators are still looking to expand. Irish operator BoyleSports, for example, has announced plans to open hundreds of new outlets, setting itself apart from the wider industry contraction that has seen 2,400 closures since 2019.
Community Role and Sector Compliance Measures
Modern betting shops often feature amenities such as sofas and coffee machines, fostering familiar environments where staff can interact closely with customers. The BGC emphasizes these personal connections as key to identifying problem gambling behavior early on. According to independent audits by Serve Legal, which are referenced by the BGC, betting shops pass age-verification tests more than 90 percent of the time—outperforming supermarkets, convenience stores, and petrol stations. Strict ‘Think 25’ checks and a pilot program using real-time software to identify risky betting patterns are additional efforts the sector cites as evidence of evolving standards.
However, critics remain skeptical, suggesting that observed interventions may not go far enough to deliver robust safeguards. The closure of the Gambling Commission’s advisory board and the implementation of a new levy-funded oversight structure have placed even greater scrutiny on the sector’s responsibilities.
Regulatory Uncertainty and Policy Contradictions
Since 2019, shop closures have left just 5,870 high street betting locations in operation, with the decline exacerbated by a £2 maximum stake on gaming machines, the pandemic, and increased online migration. The industry is concerned that the upcoming November budget could further accelerate this trend. “Greg Knight of Jenningsbet warned in the Racing Post that shop closures on a massive scale were inevitable if Labour pressed ahead with higher taxes.”
Most recently, more than 100 Labour MPs renewed their calls for substantial tax increases, intensifying industry anxieties. Analysts now predict that up to 80 percent of the current 5,870 shops could close, with 30,000 jobs potentially lost. Racing authorities warn that a reduction in funding, from the £350 million the sector contributes annually, would lead to additional job losses in related fields.
“In September 2025, the British horseracing industry staged a full strike to show how seriously it views the threat.” The British Horseracing Authority (BHA) has also cautioned that job losses across stables and racetracks may follow if financial support diminishes.
Planning Reforms and International Comparisons
Forthcoming planning reforms are set to allow councils to limit new betting shop licenses and repurpose empty units, with changes unlikely to take effect before 2026. Proponents believe these measures will reduce clustering in disadvantaged areas, while critics fear they could further erode struggling town centers’ retail base. Some councils have signaled intentions to begin enforcing stricter controls on new betting shop applications, especially in communities already experiencing high density of such establishments.
The parallels abroad are notable. In Ireland, the emergence of a new Gambling Regulatory Authority has coincided with both higher duty rates and significant shop closures. In the United States, tribal casinos and racinos still frame gambling as vital to small-town economies, highlighting the persistent global debate over the social and economic effects of gambling businesses.
Concerns About Black Market Gambling and New Levies
This week, Gamstop disclosed that 8 percent of its self-excluded members continue to gamble with unregulated operators. The BGC suggests this demonstrates their concern that pushing players away from regulated high-street venues might increase black market activity. The BGC points out that 1.5 million Britons may already wager up to £4.3 billion annually with untaxed, unregulated operators, where consumer safeguards are limited.
Operators have also begun receiving their first statutory levy invoices as of 1 September, with payments due by 1 October. The new levy, ranging from 0.1 to 1.1 percent of gross gambling yield, adds to the sector’s financial obligations even before potential tax changes set for November are enforced. The closure of the Gambling Commission’s Advisory Board for Safer Gambling on 19 September further reshapes the regulatory environment, shifting research and oversight to a new funding model.
Not everyone accepts industry warnings. “Stewart Kenny, Paddy Power’s co-founder, has called industry talk of the black market ‘scare tactics’ in interviews with UK and Irish media, saying higher taxes are justified.” On the other side, racing officials argue that additional taxes will reduce the levy income and sponsorship that support their sport, underscoring the tensions between different stakeholders.
The broader societal costs of problem gambling are substantial, with Public Health England estimating annual impacts between £1.2 and £1.6 billion and more recent assessments putting the figure near £1.27 billion when accounting for hidden consequences.
The Future of Betting Shops: An Uncertain Path
UK betting shops now find themselves at a pivotal crossroads. The industry maintains that betting shops continue to benefit communities and provide important jobs and tax revenue. At the same time, others view them as outdated businesses closely linked with societal harm. In a recent statement, the BGC stated that betting shops remain a vital high street presence, reiterating their figures regarding employment and tax contributions.
The coming November budget could redefine the retail landscape, as policymakers decide whether betting shops continue to form part of town centers or are gradually replaced by vacant storefronts. The BGC says as many as 46,000 jobs depend on the sector, while official records suggest a smaller figure. Regardless, the outcome will have real consequences for communities and livelihoods nationwide.
By the holiday season, the effects of these decisions may become clear, as towns either retain thriving high streets or face an increase in empty units. How Britain chooses to move forward will signal much about its priorities for local economies and social responsibility.
- Author
Daniel Williams
