UK tax changes leave major gambling firms in limbo
Gambling in the United Kingdom is set for a major shake-up with budget changes set to change the rate of Remote Gaming Duty from 21 per cent to 40 per cent next year.
The current 21 per cent rate was already among the highest in the world for online casino and remote gaming taxes but will now nearly double under plans published by HM Revenue & Customs, taking effect from April 1, 2026.
The package of reforms, announced as part of the Government’s autumn budget, is designed to modernise gambling taxation, raise revenue and address concerns about the social harms associated with online gaming.
Alongside the sharp increase in Remote Gaming Duty, the Government will introduce a new 25 per cent remote betting rate within General Betting Duty from April 1, 2027, affecting online sports and general bets, while bingo duty will be abolished from April 2026.
UK Chancellor Rachel Reeves has framed the changes as part of a “fair, modern and sustainable tax system” that will raise over £1 billion per year for public finances by the end of the decade.
“We decided not to do anything about in-person betting, so nothing around horse racing,” she said.
“Also we’ve managed to take tax off bingo entirely, because there’s lots of good social benefits.
“We also didn’t do anything about machine gambling because we were concerned around things like seaside towns and around incomes in pubs, for example.
“But there was plenty of evidence that online gaming in particular, but also betting does result in more serious harms than in person.”
However, the near doubling of remote gaming taxes has triggered concern in the gambling sector, with major operators warning of lower investment, potential job losses, and a possible shift to unregulated black-market operators — outcomes that industry leaders say could ultimately undermine the objectives of the reforms.
Evoke, the parent company of gambling giant William Hill, is already on record expressing the possibility of selling or breaking up their assets in the United Kingdom because of the new tax regime. Evoke estimate the changes will increase tax by up to £135million per year, and with the company in £1.82billion worth of debt, believe it will be unsustainable.
There is also growing concern that the changes will lead to punters, looking for better odds and wagering conditions, with a move to the unregulated offshore gambling market, which is estimated to be worth £2.7 billion to £4.3 billion annually, according to recent studies.
The Government says differential rates reflect evidence that high-speed online gaming carries greater harm than other gambling formats, justifying a steeper duty increase.
