UK Gambling Tax Rise Could Reshape High Street Betting Market

Higher gambling taxes introduced in the UK’s 2025 Budget could lead to betting shop closures and create more pressure from illegal operators, according to Gambling Commission policy director Ian Angus. Speaking at the Institute of Licensing Gambling Conference on 28 April, Angus said the regulator plans to increase enforcement activity over the next three years.

From April 2026, remote gaming duty in the UK will increase to 40% from 21%, while general betting duty will rise to 25% from April 2027, up from 15%. Horse racing, spread betting, pool betting, and self-service betting terminals are excluded from the betting duty increase. Bingo duty will be removed entirely from April 2026.

Several betting shops could close over the next year as operators face higher gambling taxes and new compliance costs linked to Gambling Act reforms. From 29 July 2026, the Gambling Commission will also gain powers to order the immediate removal of gaming machines that fail technical or licensing standards.

The regulator is also preparing wider local authority involvement in licensing decisions through future Gambling Impact Assessments. These measures could give councils more power over new gambling premises applications in areas considered vulnerable to gambling-related harm.

For operators, suppliers, and retail estate managers, the speech points to a UK market where tax pressure, machine compliance, enforcement risk, and local licensing controls are increasingly interconnected. The combined effect could reshape retail expansion plans, accelerate shop consolidation, and raise the cost of maintaining regulated market presence.

💡 TGJ Take

Higher gambling taxes would already be difficult for retail operators. Adding stricter machine rules and wider local licensing powers simultaneously creates another layer of pressure on betting shops and adult gaming centres across the UK. Larger groups may manage this through closures and cost cuts, but smaller retail operators could struggle to keep margins stable. Suppliers with strong exposure to land-based machine revenue should also watch this closely, as any drop in shop numbers will affect the wider retail gambling chain.