Labour’s Betting Tax Increases Could Destroy High Street Businesses

By the Editorial Team · Wednesday, September 23, 2026

Tory minister Kemi Badenoch has cautioned that Labour’s planned increases in betting taxes could lead to widespread closures of betting shops and significant job losses, citing recent cuts by major operators as evidence. This raises concerns that higher levies might push customers toward illegal gambling, reduce government revenue, and harm high street economies ahead of the forthcoming Budget.

Tory minister Kemi Badenoch has warned that Labour’s proposed increases in betting taxes risk damaging high street businesses and pushing customers towards illegal gambling markets. Speaking ahead of the upcoming Budget, Badenoch expressed concern that higher levies could force licensed betting firms to close stores and lay off employees.

Badenoch criticised Labour for what she described as a “tax doom loop,” where rising taxes lead to business closures, reducing government revenue and prompting further tax hikes. She cited recent closures by major operators as evidence of the impact, including Betfred’s decision to shut 132 shops, putting over 600 jobs at risk. Similarly, Paddy Power is reportedly planning to close around 100 outlets, while Bet365 expects to cut approximately 340 roles, all attributing these measures to increased taxation and regulatory burdens.

Last autumn, then-Chancellor Rachel Reeves increased the online gaming duty from 21 percent to 40 percent, and the levy on digital sports bets rose from 15 percent to 25 percent. Badenoch warned that if these trends continue, licensed betting firms complying with regulations may be driven out of business, inadvertently benefiting the illegal betting sector.

Grainne Hurst, chief executive of the Betting and Gaming Council (BGC), echoed these concerns, stating that further tax increases would result in significant job losses, business closures, and damage to high street economies. Hurst highlighted that raising machine gaming levies to 40 percent could cause approximately 16,000 job cuts and the closure of nearly 1,500 betting shops as well as 34 casinos. She also warned that such measures could reduce Treasury revenues by £124 million.

A Treasury spokesperson declined to comment on specific tax proposals, noting that decisions regarding taxes are the responsibility of the Chancellor and will be announced at upcoming fiscal events. The debate over betting duties comes amid broader discussions on the government’s approach to regulating and taxing the gambling industry while balancing revenue-generation and economic impact.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.