Following the announcement of the latest budget, there have been some glaring revelations about taxes in iGaming, with the government being keen to seemingly target the industry in particular.
In a bid to, albeit indirectly, combat problem gambling, higher tax rates have been implemented, more or less across every vertical with an extra £26 million to be allocated to the UK Gambling Commission (UKGC) over the next three years to help with this.
This tax hike has been feared by UK gambling industry insiders and it is thought that these hikes could lead to thousands of job losses and a reduction of investment in the UK gambling market.
The Scores On The Doors: Slots & Games = 40%, Sports Betting = 25%, Horse Racing = 15%, Bingo = 0%
A considerable focus has been put on Remote Gaming Duty for those operating in the UK market, with taxation almost doubling from 21 percent to 40 percent of the Gross Gaming Yield (GGY) for sites that offer digital slots, table games and live casino.
This substantial increase is set to be implemented almost immediately; indeed, as of April 1, 2026 and it is believed that the government specifically targeted this vertical because it has seemingly caused the highest level of harm, with hit also of the thinking that it has “generally lower operational costs”, compared to those of retail gambling.
Meanwhile, for Remote General Betting Duty, there will be an increase from 15 percent to 25 percent, with this due to come into force from April 1, 2027. However, excluded from this hike, will be horse racing, spread betting and pool betting.
It is understood that horse racing was left untouched, due to an already 10 percent statutory horserace betting levy being in place and that a further tax would essentially damage the sport.
It was a big win for bingo which saw all betting duty abolished (currently at 10 percent), with this coming into force from April 1, 2026, with this being a very positive move. It is understood that the government sees this as a much lower risk activity in terms of gambling addiction. For retail and land-based gambling entities, the current tax rate of 15 percent will remain the same.
What This Means For The UK Gambling Market
While the tax rate increase probably won’t come as a surprise to many people, it could have a significant impact and the government may well have ‘shot itself in the foot’ so to speak.
It’s thought that raising taxes could generate more income for the government to (allegedly) contribute towards combatting problem gambling, which might backfire considerably.
There is nothing stopping major operators (and tax payers) from pulling out of the UK market entirely, which would leave somewhat of a hole in the government’s forecast for the next few years, especially if they identify more lucrative markets with less regulation.
We could also see an increase in black market activity. Already the Betting and Gaming Council plus many major operators have heavily criticised the increase, reportedly warning that they will have no problem making the UK regulated market less competitive, driving customers towards the unlicensed and untaxed black market.