Chancellor John Healey is considering raising gambling taxes in next month's Budget, targeting betting shops and adult gaming centres (AGCs) while sparing pubs, bingo halls, and seaside arcades. Officials are exploring an increase to machine gaming duty on Category B slot machines — higher-stakes devices restricted to licensed venues — which the Social Market Foundation estimates could boost tax revenues by up to £458mn if doubled to 40 per cent.

Prime Minister Andy Burnham views AGCs as a blight on high streets, with former Prime Minister Gordon Brown urging action to fund a crisis and resilience fund. However, the gambling sector warns of severe consequences. EY modelling commissioned by the Betting and Gaming Council projects up to 1,470 betting shop closures and 15,900 job losses. Entain CEO Stella David says the increase would cost her company about £100mn, while Rank Group CEO Richard Harris notes over 500 UK betting shop closures already announced since last November.

British Beer and Pubs Association chief Emma Mc Clarkin emphasizes fruit machines' importance to pub finances. Minister Vicky Foxcroft has labeled gambling addiction a public health emergency. The Treasury declined to comment on Budget speculation, but a government insider stressed Healey wants to protect traditional venues while targeting 24-hour AGCs.