Regulus Partners: UK tax hikes could cause levy to collapse

Regulus Partners: UK tax hikes could cause levy to collapse

Summary

Dan Waugh, Partner at Regulus Partners, warns that recent UK gambling tax rises risk collapsing the statutory levy that funds problem-gambling prevention and treatment services. The government has increased remote gaming duty from 21% to 40% from April next year and will introduce a 25% general betting duty for remote betting from April 2027. Waugh says this will likely reduce licensed-market spending, push some players into the black market and therefore shrink levy contributions that are mathematically tied to licensed-market activity.

Key Points

• The UK has raised remote gaming duty from 21% to 40% (effective April next year).
• A 25% general betting duty for remote betting will be introduced from April 2027.
• Statutory-levy funding for treatment and prevention is linked to licensed-market spending; around 80% of projected levy funding comes from online gaming and betting.
• Reduced licensed-market activity and displacement to the black market could cause levy revenue to fall or collapse, threatening services.
• Independent charities providing gambling-harm support risk losing funding as public bodies (OHID, NHS) may prioritise their own services.
• Regulus warns the combination of higher taxes pushing players to the black market and weakened treatment funding could increase harm.

Content summary

Dan Waugh appeared on iGaming Daily to explain how the tax hikes will affect the statutory levy introduced in April to fund gambling-disorder treatment and other harm-prevention measures. Because levy contributions are proportional to spending in the licensed market, any material displacement of play to the unlicensed market will reduce levy receipts. Waugh emphasises this is not an opinion but a straightforward mathematical consequence of the funding model.

He also highlights a political and practical issue: charities that have historically received industry funding may be pushed to the back of the queue as public health bodies favour their own services, and some campaigners have discouraged charities from taking industry money. The net effect could be a significant reduction in support for people who need treatment.

The piece links to the full iGaming Daily episode (Ep 657) for listeners who want more detail from the conversation.

Context and relevance

This article matters for regulators, operators, charities and anyone involved in player protection. It intersects with broader trends: tougher regulatory stances on gambling, rising taxation as a policy lever, and concerns about the growth of the black market. The warning exposes a structural weakness in funding harm-prevention — tying treatment budgets to licensed-market revenue makes them vulnerable to policy-driven market shifts.

For operators, the piece flags business and reputational risk. For policymakers, it highlights an unintended consequence of tax policy: reduced protection for the very players the measures are meant to help. For charities and treatment providers, it signals potential funding shortfalls and a need to plan for altered revenue streams.

Why should I read this?

Quick and blunt: if you care about player safety, charity funding or run a gambling business in the UK, this explains why the tax hikes could backfire — and fast. It’s a short read that tells you who loses, why it’s basically maths, and what to watch next.

Source

Source: https://igamingexpert.com/features/uk-tax-levy-impact/