UK's BGC flags unfair business rates as driver of high street losses

The Betting and Gaming Council (BGC) warned that unfair business rates are accelerating the decline of Britain’s high streets, as betting shops continue to close, putting jobs, investment and local authority revenues at risk.

The intervention comes as debate over the future of business rates intensifies, after ministers signalled a U-turn on planned rate hikes for pubs in recognition of the pressures facing bricks-and-mortar businesses.

“Britain’s high streets are already under intense pressure, and an outdated and unfair business rates system is only accelerating their decline,” said Grainne Hurst, chief executive of the Betting and Gaming Council.

“Betting shops are closing not because communities don’t value them, but because the costs of running physical premises continue to rise,” Hurst said.

Betting shops are among the businesses disappearing from town centres, with official figures showing a 30% fall in numbers since 2019. Shop numbers declined from 8,304 in 2019 to 5,825 by March 2025, resulting in more than 10,000 job losses and reduced business rate income for local councils.

The BGC said further closures are expected following recent gambling tax rises, even though betting shops themselves did not face a direct increase. Many operators run both online and retail businesses from a single balance sheet, meaning higher online gambling taxes inevitably affect retail estates, investment decisions and staffing levels.

Retail, hospitality and leisure firms have long argued that the current business rates system places an unsustainable burden on physical premises such as pubs, shops and cafés, undermining footfall and weakening town centre economies.

“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,” Hurst said. “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.”

Despite the closures, the BGC said betting shops continue to play a significant role in local economies, supporting around 42,000 jobs, contributing nearly £1 billion ($1.34 billion) a year in direct tax and generating about £60 million annually in business rates. Research by ESA Retail found that 89% of betting shop customers also visited nearby businesses, supporting wider high street activity.

Licensed betting shops are among the most tightly regulated retail environments in the country, the body said, with strict rules on age verification, staffing and safer gambling. Surveys by the NHS show problem gambling rates at around 0.4% of the adult population.

Hurst warned that further tax rises risk accelerating shop closures and pushing customers towards the illegal gambling black market.

The BGC called for an evidence-led and proportionate approach to business rates and taxation, urging policies that support high street regeneration, ensure fairness across sectors and avoid rewarding illegal operators.