Burnham Confirms Higher Business Rates for AGCs, Leaves Bookmakers in Limbo

UK Prime Minister Andy Burnham has signalled that Adult Gaming Centres (AGCs) will face increased business rates to fund relief for pubs, clubs and live music venues, while the fate of retail betting shops remains uncertain.

The plan, announced via a government briefing titled “Burnham means business”, will introduce cuts from April 2027, financed by reviewing reliefs for businesses deemed to have a “negative impact” on society. Vape shops were the first category officially confirmed; Burnham later stated that AGCs should also expect higher costs.

Burnham Targets AGCs for Rate Hikes

Speaking to UK media, Burnham explained the rationale: “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.” He argued that AGCs “can often bring real harm to communities” and that vape shops “don’t add much to community life”.

The policy is part of a broader effort to “build an economy that works for every postcode”, including a 20% business rate cut for venues the cabinet considers “the backbone of local high streets”. The Labour government expects the package to generate £100m in initial support for 32,000 small and independent businesses.

Burnham’s move comes after 2026 figures from the British Beer & Pub Association recorded 161 permanent pub closures in the first quarter alone, roughly two per day — a trend Labour has pledged to reverse.

Bookmakers Face Uncertain Future

From April 2026, Retail, Hospitality and Leisure (RHL) venues can apply for a 15% relief on business rates, but bookmakers and AGCs have been excluded from that discount, leaving them to face what has been termed “disproportionate costs” compared to other high-street businesses.

Greg Knight, CEO of JenningsBet, noted on LinkedIn that betting shops are often “tarred with the same brush” as AGCs in the eyes of government and the public. “Betting shops offer a mix of live sport, numbers, bingo and gaming machines. In every betting shop there are tables & chairs which encourage social interaction and a shared experience. AGCs do not,” he said.

Wider Tax Burden Already in Place

UK gambling is already subject to a heavier tax regime. Remote Gaming Duty (RGD) rose from 25% to 40% on 1 April 2026 as part of former Chancellor Rachel Reeves’ 2025 budget. General Betting Duty (GBD) will increase from 15% to 25% from April 2027, though physical gaming and horse racing were excluded after lobbying by the Betting and Gaming Council and British Horseracing Authority.

Andrew Lyman, Gibraltar Gambling Commissioner, wrote on LinkedIn: “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.”

Pressure from Campaigners and Local Governments

Gambling law reform campaigners, notably the Social Market Foundation (SMF), have long called for curbs on AGCs. A 2025 report with Brent Council argued that such venues are linked to criminal and anti-social behaviour and that 24/7 opening worsens problem gambling in deprived areas.

Burnham has been sympathetic to local government calls for more control. Last year he signed an open letter from 39 councils, led by Brent, demanding stronger powers over high-street gaming. Dawn Butler, MP for Brent and a Burnham ally, has called for a reversal of the ‘Aim to Permit’ rule, which is being addressed via the English Devolution and Community Empowerment Act.

Key Questions Remain

With Burnham’s rates policy now targeting AGCs, retail betting shops are left wondering whether they will face similar treatment. JenningsBet’s Knight warned that “betting shops make a direct contribution to horse racing and greyhound racing. AGCs do not.”

The gambling sector is left with two pressing questions: what should it do next, and how did it end up in such a hostile political environment after the tax increases of the previous year?