Badenoch Warns Betting Tax Rises Are “Cannibalising” the High Street

Conservative Party leader Kemi Badenoch has accused the Government of “cannibalising” the High Street through increased taxation of betting firms, warning that further levies could force operators out of business and push customers toward unregulated gambling.

Writing recently, Badenoch expressed concern that companies may not survive if duties are raised too high, with punters potentially migrating to the black market. Her intervention has been welcomed by the Betting and Gaming Council (BGC), the industry’s main trade body, whose chief executive, Grainne Hurst, said the Conservative leader was “right to warn” that further betting tax rises would cost jobs and increase pressure on businesses across Britain’s high streets.

The Policy Background

The comments come against the backdrop of significant changes to gambling taxation announced in the 2025 Budget. Under the reforms:

• Remote Gaming Duty, applied to online casino and gaming products, rose from 21% to 40% from April 2026.

• General Betting Duty remains at 15% for bets placed in physical betting shops, with a new remote betting rate set to apply to online sports betting at 25% from April 2027.

• Horse racing betting was exempted from the general betting duty increases, maintaining the existing 15% rate for that sector.

The differential treatment of online and retail betting has become a central point of contention. Industry figures have long argued that high-street bookmakers operate on thin margins compared with online operators, and that disproportionately taxing retail premises accelerates shop closures.

Industry Impact and Job Losses

Warnings from within the sector have intensified. Entain, the owner of Ladbrokes, is currently consulting on approximately 400 customer-service job cuts, with its chief executive having cautioned that a gambling tax rise could result in the closure of around 1,470 betting shops. Separately, BGC modelling has suggested that raising Machine Games Duty to 40% could cost around 16,000 jobs across the sector.

The industry contributes significantly to the UK economy. According to figures published by the Betting and Gaming Council, the regulated betting and gaming sector generates more than £6.8bn annually in economic contribution, some £4bn in tax revenue, and supports around 109,000 jobs. Industry representatives also point to substantial commercial funding for British sport, particularly horse racing and football.