Adult Gaming Centers (AGCs) are all but confirmed to be facing an increase in business rates on England’s high streets, but a question hangs over whether bookmakers will be included too.

Retail betting was excluded from the tax increase announced in the November 2025 budget by Rachel Reeves, then Chancellor of the Exchequer under Keir Starmer’s government. A change in administration has shifted the goalposts, however.

New UK Prime Minister Andy Burnham has all but confirmed that Adult Gaming Centers (AGCs) and other gambling venues will take the burden of slashing business rates for pubs, clubs and live music venues.

The initial plans of the new PM were announced yesterday afternoon via a briefing titled “Burnham means business”.

Burnham targets AGCs

Cuts will be introduced from April 2027, with the government announcing that they will be funded by reviewing reliefs for businesses viewed as having a ‘negative impact’ on British society. 

Vape shops were the first businesses officially confirmed to fall under this category, with Burnham later stating that AGCs should also brace for impact.

Speaking to UK media, Burnham explained the government’s plan.

“You can’t see all businesses the same,’ he said. 

“Some do real good in communities. Other businesses can cause social harm. 

“Adult Gaming Centres on high streets can often bring real harm to communities. People will see the vape shops that don’t add much to community life and cause other issues too.

“It’s about developing a business rates regime where we give incentives to the businesses that give benefits, and look differently at the ones that cause social harm.”

The nation-wide policy shift aims to “build an economy that works for every postcode”, part of which includes a 20% business rate cut for venues that the PM’s cabinet considers “the backbone of local high streets”.

The Labour government believes that its plan will generate an initial support package for pubs, clubs and venues of £100m to help support 32,000 small/independent businesses.

Of concern for Burnham, 2026 figures from the British Beer & Pub Association (BBPA) recorded the permanent closure of 161 pubs across Great Britain during the first quarter, equivalent to almost two pubs per day — a trend Labour has pledged to reverse by easing the burden on businesses.

As of April 2026, the Labour government applied a new business rate qualifiers for Retail, Hospitality and Leisure (RHL) venues, which can apply for a ‘15% relief’ to discount direct bills related to business expenses. 

However the programme has excluded bookmakers and ARCS from the RHL discounts, to face what has been deemed as ‘disproportionate costs’ compared to other high street businesses.

The Prime Minister has clearly listened to, and agrees with, this message: higher tax on social harm, lower tax on social good.

I expect a tax increase on high street gambling venues to be introduced in the coming months, to balance business rates relief for local pubs. https://t.co/V1YHNNd4Xg pic.twitter.com/j0kdZsL6sy

— James Noyes (@jranoyes) July 23, 2026

UK gov’t under pressure over AGC regulation

Gambling law reform campaigners have long been advocating for the reduction of AGCs.

One of the most vocal proponents of legislative change, policy think-tank Social Market Foundation (SMF), has argued that such venues are likely to fail keeping gambling safe from crime and anti-social behaviour.

In a 2025 report compiled with the help of Brent London Borough Council, the think-tank outlined that Brent residents do believe that AGCs could be associated with criminal and anti-social behaviours. 

SMF also argued that the proximity of venues to financially deprived areas could exacerbate problem gambling behaviour, which is further worsened by the fact that AGCs are open 24/7.

On a relevant note, a BBC investigation last year showed that an undercover reporter was able to enter multiple AGC venues, despite being self-excluded.

The investigation was subsequently followed by a sharp critique from the then-Gambling Commission Chief Executive Officer, Andrew Rhodes. 

PM Burnham not in favour of ‘aim-to-permit’

Burnham has shown himself more than sympathetic to calls from local governments to rollback the presence of high-street gaming venues.

Last year, he lent his signature to an open letter penned by 39 local UK governments, led by Brent Council, calling for more powers over the gaming sector in their areas.

Similar calls have been made at the parliamentary level, with Dawn Butler, MP for Brent and a Burnham ally in the Labour party, calling for a reversal of the ‘Aim to Permit’ rule – something in the pipeline via the English Devolution and Community Empowerment Act.

Calls for more local powers have largely targeted AGCs. However, there is every chance betting shops could find themselves in the firing line also.

As Greg Knight, Chief Executive Officer of retail bookmaker JenningsBet, noted on LinkedIn this week, betting shops are often “tarred with the same brush” as AGCs in the eyes of both the government and much of the general public.

“Betting shops offer a mix of live sport, numbers, bingo and gaming machines,” he said.

“In every betting shop there are tables & chairs which encourage social interaction and a shared experience. AGCs do not. Betting shops make a direct contribution to horse racing and greyhound racing. AGCs do not.”

More policies, more questions

As mentioned above, UK gambling is subject to a hefty new tax regime. Remote Gaming Duty (RGD), paid by online gaming operators, was increased from 25% to 40% on 1 April 2026 as part of ex-Chancellor Reeves’ 2025 budget.

General Betting Duty (GBD), paid by all operators, will increase from 15% to 25% from April next year. However, physical gaming and horse racing were excluded from the tax raises after extensive campaigning by the Betting and Gaming Council (BGC) and British Horseracing Authority (BHA).

With Burnham’s new business rates policy, retail betting now has a few questions about where it stands – chiefly, will Burnham just target AGCs, or will retail betting shops be “tarred with the same brush” as JenningsBet’s CEO observed?

Writing on LinkedIn, Andrew Lyman, Gibraltar Gambling Commissioner, remarked that “shouldn’t the gambling industry be prompting the narrative that they are more like the alcohol industry rather than tobacco”.

“After all, UK betting shops are social hubs and purveyors of low ticket entertainment,” he said. “Betting shops are also part of working class culture.”

As with many UK policy changes, the gambling sector is left with more questions, with two standing out in particular – what should it do next? And, much like after the taxes last year, how did it find itself facing a hostile political environment in the first place?

Article contributions from Ted Orme-Claye and Ted Menmuir