Britain’s regulated betting industry has warned that further increases in taxation and operating costs could accelerate betting shop closures and reduce future investment across the sector.
The Betting and Gaming Council (BGC) said more than 540 high-street betting shops have closed since last year’s Budget, resulting in around 4,500 job losses. The organisation said these closures add to a longer decline in retail betting, with approximately 3,000 shops shutting since 2019 and more than 15,000 positions disappearing during that period.
The remaining betting shops continue to employ around 37,500 people across Britain, according to the trade body. The BGC also highlighted the wider economic role of the regulated betting and gaming industry, which it said supports 109,000 jobs, contributes £6.8bn in gross value added and generates more than £4bn annually in tax revenue for the Exchequer.
The organisation argued that licensed betting shops should be considered separately from illegal gambling operators and said claims that betting shops are expanding without restriction do not reflect current market conditions.
Industry Warns Tax Increases Are Affecting Retail Operations
The BGC said recent tax changes are placing additional pressure on operators that run both retail locations and online platforms. The organisation argued that higher costs in one part of a company’s operations can influence decisions about investment, employment and shop networks.
The Treasury previously rejected suggestions that government policy was responsible for betting shop closures, stating: “It is wrong to suggest it is the fault of government for these closures. Gambling duty rates for high street shops have not changed.”
However, the BGC said this response does not reflect how modern betting companies operate, as retail and online businesses are often managed together.
Grainne Hurst, Chief Executive of the Betting and Gaming Council, said in a press release: “The numbers speak for themselves. The BGC repeatedly warned the previous Chancellor that further tax increases would cost jobs, close businesses and damage growth.
“Since the Budget, betting operators have announced the closure of 540 high-street shops, with around 4,500 jobs lost. Betfred’s decision to close 132 shops, putting more than 600 jobs at risk, is the latest evidence of the pressure now facing the sector.
“The unprecedented doubling of online gaming duty is already hammering betting businesses. The Treasury may pretend these tax rises only hit online gambling, but that is simply not how the industry works. Betting companies run their shops and online businesses together, so when costs are driven up in one part of the business, jobs, investment and high-street shops suffer across the rest.
“And worse is still to come. The forthcoming increase in online sports betting duty will pile even more pressure on operators, threatening jobs and investment while taking vital funding and sponsorship away from British sport.”
The BGC said operators are also concerned about future tax measures and their effect on employment and spending within communities.
Betting Sector Highlights Role In Local Communities
The trade body said betting shops remain part of many local high streets and continue to generate customer activity for neighbouring businesses.
Hurst added: “Betting shops are an integral part of Britain’s high streets. The real threat is more empty units and fewer local jobs. Heaping further pressure on these highly regulated businesses will only result in even more closures, more job losses, less investment and less money for sport.
“These are the real-world consequences of the previous Chancellor’s damaging tax rises. They are bad for jobs, bad for high streets and bad for sport – and they hand a huge advantage to the unsafe, unregulated gambling black market.”
The sector has also argued that increased costs could encourage more customers toward unlicensed operators that do not follow the same regulatory requirements.
Betfred founder Fred Done has previously warned that offshore bookmakers accepting bets from UK customers do not contribute financially to Britain.
The organisation has also raised concerns about possible proposals affecting gambling businesses, including plans linked to higher taxes on gaming machines. Previous discussions have included a potential £460 million tax increase affecting slot machine operators following recommendations from the Social Market Foundation think tank.