The Betting and Gaming Council (BGC) has issued a warning that the Government’s “unfair” business rates are fueling a high street exodus. According to the industry body, these rising costs are forcing betting shops and other businesses to close, ultimately threatening local employment, stifling investment and draining vital tax revenue from local councils.
The Growing Call for Business Rate Reform
This warning arrives as the debate over the future of Britain’s high streets intensifies. Ministers recently signaled a U-turn on planned business rates hikes for pubs—a move that recognised the extreme pressures facing “bricks-and-mortar” businesses. However, the BGC argues that this “common-sense approach” must be extended to the entire high street.
BGC CEO Grainne Hurst said: “Britain’s high streets are already under intense pressure, and an outdated and unfair business rates system is only accelerating their decline. Betting shops are closing not because communities don’t value them, but because the costs of running physical premises continue to rise.
“Ministers were right to recognise these pressures when it comes to pubs, and the same common-sense approach must now be applied across the high street. Without urgent reform, we risk losing thousands more local jobs, investment and vital footfall, while handing a growing advantage to the harmful gambling black market.”
Betting Shop Closures: By the Numbers
Official figures highlight the severity of the decline in the retail betting sector:
• 30% Decrease: The number of betting shops has fallen by nearly a third since 2019.
• Store Count: Locations dropped from 8304 in 2019 to 5825 in March 2025.
• Job Losses: This contraction has already resulted in over 10,000 job losses.
While betting shops did not face a direct tax increase in recent budgets, many operators manage both online and retail estates from a single balance sheet. Higher online gambling taxes inevitably impact the viability of physical shops, affecting staffing levels and long-term investment.
The Economic Impact on Local Communities
Despite the closures, the sector remains a pillar of the local economy. Currently, licensed betting shops:
• Support approximately 42,000 jobs.
• Contribute nearly £1 billion annually in direct tax.
• Generate £60 million per year in business rates for local authorities.
Furthermore, research by ESA Retail found that 89% of betting shop customers visit other nearby businesses during their trip, driving the “secondary spend” that keeps town centers alive.
The Risk of the Gambling Black Market
Beyond economics, the BGC warns of a social risk. Licensed shops are tightly regulated with strict age verification and safer gambling tools. Problem gambling rates in the UK remain low, at approximately 0.4% of the adult population, according to NHS surveys.
However, pushing customers away from regulated high street shops risks driving them towards the harmful illegal black market. These unlicensed operators offer no consumer protections, contribute nothing to the Treasury and provide no funding for problem gambling treatment or British sport.
