Chancellor Rachel Reeves’ 2025 Budget outlines one of the most significant fiscal shifts the UK gambling market has faced in more than a decade. Under the new measures, Remote Gaming Duty for online games of chance will rise steeply from 21% to 40% starting April 1, 2026. A further increase will push online betting duty from 15% to 25% beginning April 1, 2027. These changes come as online gambling continues to dominate the British market, with the Gambling Commission reporting £16.8 billion in gross gambling yield for FY25 and a 13.1% rise in digital activity.
While players will remain exempt from taxes on their winnings, analysts expect operators to adjust business strategies to offset mounting tax obligations. This may include reductions in bonuses, welcome offers, and free bet incentives, all of which could impact player value and competitiveness. Industry leaders, including Betfred, Paddy Power, and Entain, have issued warnings about potential job losses, shop closures, and shrinking high-street presence as cost pressures intensify.
The tax reforms arrive after months of consultations and debate, during which think tanks proposed even higher duty increases. Some operators, such as Flutter and William Hill, have already taken early measures by reorganising operations and exiting selected international markets. Despite broad industry concern, the government has chosen to maintain current tax levels for in-person gambling and horseracing, while abolishing bingo duty entirely from April 2026.
According to Reeves, the combined reforms are projected to generate over £1 billion per year by 2031, marking a decisive step in reshaping the regulatory and financial framework of the UK’s online gambling ecosystem.
