Betting Shops Close, Bingo Expands. Now Comes the Tax Rise

The owner of Ladbrokes and Coral expects the October Budget to add around £25 million a year to its UK and Ireland retail costs.[1] Entain plans to recover that money by the end of 2028 through operational savings, a smaller estate and potentially by winning customers from competitors that leave the market.

William Hill and Rank were already closing premises before the October Budget. Rank shut Grosvenor casinos in Swansea, Reading and Sunderland during the summer after concluding that they were no longer economically viable.[2]

From April 2027, Machine Games Duty will rise from 20% to 25% on machines with maximum stakes above £1 or maximum prizes above £100.[3]

A decade of betting-shop closures

The Gambling Commission recorded 5,617 betting shops at 31 March 2026, down from 5,825 a year earlier and 8,915 in March 2016. More than a third have disappeared over the decade.[4] The reduction in the maximum stake on fixed-odds betting terminals from £100 to £2 in April 2019 was followed by further closures. COVID-19 restrictions subsequently disrupted trading across the land-based industry.

Three different paths for Britain's gambling premises

Selected year-end March snapshots, 2016–2026. Each chart has its own scale; lines connect selected observations, not every intervening year.

Betting shops

-37%

8,915 in 2016 → 5,617 in 2026

Bingo premises

+9%

654 in 2016 → 714 in 2026

Casinos

-11%

152 in 2016 → 136 in 2026

Policy and trading changes

1. April 2019 · Regulation
   B2 maximum stake reduced to £2

   The maximum stake on B2 machines fell from £100 to £2, changing the economics of betting shops.

2. 2020–21 · Pandemic
   COVID-19 trading restrictions

   Closures and restrictions disrupted land-based gambling across all three sectors.

3. October 2026 · Taxation
   Higher Machine Games Duty announced

   A 25% rate will apply from April 2027 to machines above the specified stake or prize thresholds. This announcement came after the chart's last observation.

William Hill's contraction extended beyond that reporting period. In a 23 October trading update, parent company Evoke reported approximately 270 fewer shops than a year earlier. The group's third-quarter revenue declined 7%, or 2% on a like-for-like, constant-currency basis excluding the estate reduction. Evoke chief executive Per Widerström linked the closures to higher industry taxation, referring to the tax environment preceding the October Budget.[5]

Licensed bingo premises increased from 688 in March 2025 to 714 in March 2026, according to the Gambling Commission's active-premises series. The category includes venues other than traditional bingo halls.[4]

Rank confirmed on 15 October that Grosvenor casinos in Swansea, Reading Central and Sunderland had closed during the quarter ending September. It said the properties were no longer economically viable over the medium term. Across the remaining comparable Grosvenor estate, like-for-like net gaming revenue increased 6%, including 14% growth in machine revenue.[2]

Five percentage points more

From 1 April 2027, machines with a maximum charge to play exceeding £1 or a maximum prize exceeding £100 will move from the 20% standard Machine Games Duty category to the existing 25% higher-rate category. The 5% lower rate remains unchanged, and machines within the standard-rate thresholds continue at 20%.

Machine Games Duty applies to net machine takings, broadly stakes received less winnings paid. For £1 million of annual takings reclassified from 20% to 25%, the additional charge would be £50,000 if play remained unchanged. HMRC expects £135 million of additional receipts in 2027–28 and approximately £130 million annually thereafter. It estimates 5,100 operators and 12,400 premises will be affected.[3]

The Gambling Commission's latest industry figures show how heavily land-based gambling businesses rely on machines.

In bingo, machines generated £461.7 million of the sector's £703.8 million gross gambling yield in 2025/26, equivalent to 65.6%. Machines accounted for 49.4% of gross gambling yield in non-remote betting and 25.6% in casinos, where they generated £238.9 million of the industry's £933.9 million total.[4]

Not all that income will be subject to the higher duty rate. The figures cover machines across existing tax categories, and the additional liability will depend on the types of machines operated and their takings.

The operators' finances

Entain expects to neutralise its estimated £25 million additional annual duty by the end of 2028. It has not disclosed how many shops it may close.[1]

Entain's UK and Ireland retail revenue declined from approximately £1.07 billion in 2024 to £1.05 billion in 2025, while underlying operating profit increased from £118 million to £133.6 million. Its £25 million forecast additional annual duty is equivalent to 18.7% of that historical operating profit.[1][6] This is a comparison of different years and not a forecast reduction in earnings.

William Hill's retail business reported £55 million in adjusted EBITDA for 2025, down 17%, despite a 5% increase in gaming revenue following the installation of 5,000 new machines. Parent company Evoke recorded a £169.5 million non-cash impairment against its retail business, citing difficult high-street trading conditions.[7]

Entain's underlying operating profit and Evoke's adjusted EBITDA are different measures, so the figures cannot be compared as equivalent margins.

Entain has identified estate rationalisation among the measures it will use to recover the additional duty. It has also raised the possibility of gaining customers from competitors that withdraw from the British market. The company has not said how much of the £25 million it expects to recover from either measure.[1]