20 October 2026 | iGaming Industry News |
Betting shops have continued to close across the UK, with rising taxes and operating costs putting further pressure on the industry. Meanwhile, adult gaming centres (AGCs) have experienced significant growth over the same period. However, a potential rise in Machine Games Duty (MGD), which could be announced in the UK Budget on 28 October, may bring this period of expansion to an abrupt halt.
Adult gaming centres can be found in towns and cities across the UK, offering customers the opportunity to play gaming machines. Unlike traditional bookmakers, AGCs do not accept bets on sporting events. Many operate around the clock and have continued to thrive throughout 2026.
With the Government facing growing pressure to address gambling related concerns and the decline of Britain’s high streets, attention could now turn towards adult gaming centres. Andy Burnham has previously expressed concerns about the presence of betting shops on UK high streets, and there is growing speculation that AGCs could face increased scrutiny and taxation.
According to a recent report by the Financial Times, government officials are considering proposals to increase the rate of Machine Games Duty (MGD), potentially placing further financial pressure on the gambling sector.
Adult gaming centres could be among the next businesses affected by tax increases. While traditional high street bookmakers generally close by 10pm, many AGCs operate 24 hours a day. Despite offering similar gaming machines, the two types of establishment have different operating models, raising questions about how future tax changes could affect each sector.
Some of the UK’s largest bookmakers have also raised concerns about the growing competition from gaming arcades and the impact on their retail revenues.
One of the most vocal critics has been Entain, the parent company of Ladbrokes and Coral. The gambling operator has warned investors that gaming arcades are increasingly competing with its high street betting shops.
In a letter to the Prime Minister on 11 September, Entain chief executive Stella David warned that doubling the standard rate of Machine Games Duty from 20% to 40% would add approximately £100 million a year to the operating costs of its UK betting shops.
She also referred to modelling carried out by EY on behalf of the Betting and Gaming Council, which suggested that the proposed changes could result in up to 1,470 betting shop closures, 15,900 job losses and a net loss to the Exchequer of approximately £120 million.
David reiterated these concerns during Entain’s third quarter earnings call on 15 October, telling analysts that approximately 630 betting shops had closed across the industry over the previous year, even before any further tax increases.
She argued that increasing the duty would be self-defeating and could further damage Britain’s already struggling high streets.
There is also speculation that Betfred could look to convert some of its existing high street betting shops into adult gaming centres while continuing to close other underperforming locations.
Such a move could highlight a wider shift within the UK gambling industry, with traditional bookmakers potentially looking towards the AGC model as an alternative to conventional betting shops.
At Casinoslike.org, we believe further tax increases targeting adult gaming centres are becoming increasingly likely.
However, despite the prospect of higher taxation, we also believe that the UK’s leading bookmakers could begin to recognise the commercial potential of the AGC sector.
This could lead to greater investment, acquisitions and the conversion of existing betting shops into modern gaming centres, offering customers an enhanced experience compared with some of the more outdated betting shop formats currently found on Britain’s high streets.
With the Budget approaching, the future of adult gaming centres could soon become a major talking point for the UK gambling industry.
