The UK government is reportedly considering a dramatic increase in Remote Gaming Duty (RGD), potentially raising the rate to 50% for online gambling operators. This proposed change has triggered concern across the iGaming sector, with operators warning of severe consequences for both businesses and players.
Industry leaders, including John Salmon of Slots Temple and Martyn Hannah of Comparasino, emphasize that smaller operators would struggle to absorb such a significant tax hike. Without the scale and diversified revenue streams of larger brands, these operators could be forced to exit the UK market entirely. The immediate effects would likely include reductions in RTPs, smaller promotions, and limited investment in innovation. For players, this translates to fewer options, diminished value, and an overall poorer gambling experience.
Experts also highlight the risk of driving players toward unlicensed, black-market sites. Evidence from markets with high tax rates, such as the Netherlands, indicates that steep increases often reduce legal market share rather than increase government revenue. Players seeking better returns and bonuses are likely to migrate to unregulated operators, undermining protections offered by licensed platforms.
The debate surrounding the 50% RGD increase underscores the delicate balance between taxation, regulation, and market sustainability. While governments aim to raise revenue, imposing excessive taxes risks destabilizing the regulated iGaming industry and eroding consumer trust. Industry stakeholders are calling for careful consideration of potential unintended consequences, stressing the importance of supporting a thriving, responsible, and competitive online gambling market in the UK.
Ultimately, the proposed tax hike could reshape the UK iGaming landscape, affecting operators, players, and the wider ecosystem. Maintaining a fair and balanced regulatory approach will be essential to ensure the long-term health and growth of the sector, while protecting both consumers and legitimate operators.
