The gambling taxation debate had a surprising intervention from JD Wetherspoon pub chief Sir Tim Martin earlier this week, who warned against the widespread impact of the planned tax hikes on the slots industry.
Machine gaming duty is widely touted to rise from 20% to 50%, a move that Martin warned could have a big impact on Wetherspoons.
Martin’s voice lends to that of Nigel Farage, who also stated that he believes there will be stark consequences for any significant rise in gambling tax for seaside towns and bookmakers alike. Farage has aligned with horse racing with his lower taxation economic philosophy, so, although impromptu, the support of the Reform leader shouldn’t come as a surprise.
Farage said: “What I would say about the high street is that one of the things that does still survive is the bookmaker shop – which actually, for a lot of lonely people, is a place they can go in and meet people. There are 22 million people a week who have a bet of some kind in this country. Yes, there are a few problem gamblers, but there are problem drinkers, there are problem drug takers, there are problem everythings.
“I worry that if she (Rachel Reeves) puts up Gaming Duty significantly in this budget, not only will it close hundreds, maybe thousands of high street bookmakers, but I genuinely wonder whether Clacton Pier and the other 400 Seaside villages and towns, my worry is that it will close all those down too.
“You have to get this right, and it will be a tax, a tax on turnover and not on profit, so the impact on the high street and on the seasides could be very serious. I hope she listens, and I know The Sun has been taking this incredibly seriously and quite rightly.”
Although Martin is a polarising character, a warning from the hospitality sector could carry significant weight as the high street and British pubs remain on life support amidst a tough economic climate on the back of the pandemic.
Given there are already major warnings over the impact that a tax shift will have on the retail betting sector, alarm bells will be sounded over further damage to the high street.
Martin’s fear of being caught as collateral damage in the battle between the gambling industry and Rachel Reeves isn’t unfounded.
The trajectory of revenue for Wetherspoons when it comes to gaming revenue has had significant momentum, and it serves as a nice boost to the embattled hospitality sector. That, however, may be thwarted if the plans of Reeves are to be believed.
For the full year ending in July 2025, gaming machine sales increased by more than 11% year-over-year, according to the latest numbers from the pub chain giant. The revenue uplift of the gaming machines somewhat dwarfed that of the overall group, which grew by approximately 4%.
In total, the group earned £2.127 billion for the year, with £73.2m of that coming from gaming machines, approximately 4% in total.
The increased taxation rates would likely be a blockade to an avenue of revenue for the hospitality sector that has continued to grow in recent years. Over a six-year period it has spiked by almost 60% – rapidly lapping the growth of food and drink revenue over that same period.
For comparison, another major pub chain, Greene King, generated £966m revenue for the 2024 calendar year, £32.7m of which came from other services, which includes gaming machine income.
Greene King were less specific when it came to the growth of gaming income, however, it does underpin that alternative revenues are becoming increasingly important for the British hospitality sector.
The high street may be hardest hit by Reeves’ tax increases despite it being one of its most prosperous sectors. Land-based betting has come under increased scrutiny in recent times, with high street slot venues also being hit with political backlash.
The BGC, however, has been steadfast in its support of the sector, emphasising it ‘is proud of the role our members play supporting Britain’s hard-pressed high streets’.
The body added: “Betting shops support 46,000 jobs, contribute nearly £1bn a year in direct tax to the Treasury and a further £60m in business rates to local councils, while having the highest standards on player safety and age verification.
“Crucially, research by ESA Retail shows that 89% of betting shop customers also visit other local businesses when they go to the bookies, providing a welcome boost to high street trade. However, since 2019, the number of betting shops has fallen by 29% – over 2,300 closures in just five years, with the loss of thousands of jobs, and millions in tax revenue.
“Each month, around 22.5 million people in Britain enjoy a bet – on the lottery, in bookmakers, casinos, bingo halls, and online – and the overwhelming majority do so safely and responsibly. The most recent NHS Health Survey for England estimated that 0.4% of the adult population are problem gamblers.”
