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How taxation is changing the face of the UK high street
The sector’s taxation framework is under review – the 15% duty rate, once a cornerstone of the retail betting business model, may soon not suffice. And if recalibrated upward, the effect could be a rapid intensification of store closures, with knock-on effects for jobs, local economies and the fabric of the high street.
Echoing these concerns, Fred Done, Chair of Betfred, said: “If it went up to anywhere like 40 per cent or even 35 per cent there is no profit in the business. We would have to close it down. I’m talking job losses.”
A sector in retreat
While high-streets have long confronted the headwinds of online retail, the gambling retail sector has been especially vulnerable. According to the trade-body data, the number of UK retail betting shops fell from some 10,000 in 2017 toward around 6,600 in 2025. For example, Paddy Power (part of Flutter Entertainment) announced 57 closures across the UK and Ireland, including 29 UK locations, placing 128 jobs at risk.
These closures are symptomatic of deeper pressures: rising operating costs, landlords’ demands, shrinking revenues in-store and the shift of betting online. The consultancy PwC described retail betting shops as being in “structural decline”.
Why are shops vanishing?
Three interlocking forces are at work. First: the shift to online. As more players place wagers via mobile apps and websites rather than on the high street, the demand at physical venues has diminished.
Secondly, regulatory reforms have reduced once-lucrative income streams for shops. Notably, the maximum stake on fixed-odds betting terminals (FOBTs) was cut to £2 in 2019, removing a major profit engine.
Over the last year the industry has flagged at least one additional risk: potential tax rises. In September and October 2025 a succession of operators warned that higher duties would
make many retail shops unviable. For example, Betfred said all 1,287 of its UK shops could close if duty rises pushed betting profits from 15% to 30%.
From high street anchor to quitting shop
In a typical UK town, as banks closed and cafés multiplied, betting shops became a familiar fixture on the high street. But now, as one operator closes outlets, the high street risks losing another anchor to keep retail alive. Each shuttered store reduces foot-traffic and creates the visible sign of decline.
In the case of Paddy Power’s closures, management explicitly acknowledged the role of market pressures even while stopping short of blaming tax directly: “While today’s closures are not directly related to the uncertainty surrounding the Budget, a higher gambling tax could have a significant impact on jobs and investment across the industry and drive more customers to unlicensed operators.” .
The tax picture: what is being paid now and what might change
Current UK taxation of betting and gaming is complex, layered and, for many observers, out-of-sync with digital transition.
According to HM Revenue & Customs guidance:
General Betting Duty (GBD) applies to bookmakers’ profits for bets placed in-shop or off-course fixed odds. The rate is 15% on gross profits.
Pool Betting Duty (PBD) is also 15%.
Remote Gaming Duty (online gaming) is 21%
Machine Games Duty (MGD) for slot / gaming machine takings in a shop is between 5% and 20% depending on category.
Revenue forecasts show that betting and gaming duties raised about £3.8 billion in 2025
However, the government is consulting on tax reform and proposals include a possible “unified levy” or duty across online betting and gaming to replace three separate duties.
Some Labour-backed MPs and independent think-tanks like the Institute for Public Policy Research (IPPR) have argued for raising the general betting duty for sports from 15% toward 30%+ and aligning machine/online duty toward 50% to raise as much as £3 billion.
Operators argue that duty rises of that scale would force retail closures and push punters into unregulated markets; regulators and campaigners argue the risk of harm from some gambling products justifies higher duty.
What’s ahead for the UK high street
The betting-shop retreat carries consequences beyond the industry itself. Each store closing is a visible wound on a high street already under stress. Vacant units drag down aesthetics, reduce overall footfall and hamper local regeneration efforts.
For retailers, this means fewer “destination” draws, which in turn reduces incidental passers-by, the kind that stop for a coffee or browse after visiting the bookies. Local councils fear this effect, especially in smaller towns where leisure/off-course betting once provided steady traffic.
If tax rises go ahead, the industry warns many shops will close sooner than later, accelerating the trend. As one operator said: “We’ve probably got 20 years of life on the UK high street if nothing else changes.”
For policymakers, the challenge is also Brexit: balancing the revenue potential of higher duties with the risk of hollowing out yet more high-streets and driving players offshore to black market sites.
