UK sector hit with 40% remote gaming duty, new remote betting tax from 2027
Summary
The UK government will raise the remote gaming duty from 21% to 40% from April 2026. A new general remote betting duty of 25% (up from 15%) will apply from April 2027, but only to online betting profits and excluding spread betting, pool bets and horse racing. Self-service betting terminal bets will also be exempt from the new betting duty.
The autumn Budget and the Office for Budget Responsibility projections say the tax changes are expected to materially lift gambling tax receipts: an expected £4bn in 2025-26 and rises to around £5bn in 2026-27. The government also notes operators are likely to pass on up to 90% of the increase to consumers, which it estimates will reduce demand and shrink the long-term yield by around £500m by 2029-30. The article notes the government expects to raise £1.1 billion in gambling taxes by 2029-30.
Key Points
- Remote gaming duty rises from 21% to 40% from April 2026.
- New remote betting duty of 25% comes into force in April 2027, charged on online betting profit only.
- Exemptions: spread betting, pool bets, horse racing bets and self-service betting terminal bets are excluded from the new betting duty.
- The Budget forecasts a sharp increase in gambling tax receipts: c. £4bn (2025-26) and £5bn (2026-27).
- Bingo duty’s 10% rate will be abolished and casino gaming duty bands frozen for 2026-27.
- Government expects operators to pass on most of the duty hike to customers, reducing consumer demand and trimming long-term yield.
- Changes follow HMRC/Treasury consultations and Treasury Select Committee work on tax consolidation and sector risk differentiation.
Content summary
The article reports the UK autumn Budget decision to overhaul and increase remote gambling taxation. It outlines the immediate changes to remote gaming duty and the phased introduction of a consolidated betting duty, plus the specific carve-outs for certain bet types and terminals. The piece summarises official revenue forecasts and government assumptions about how much of the tax rise operators will pass to customers, and it briefly traces the policy background — consultations from HMRC and the Treasury, think-tank input, and Treasury Select Committee inquiries into sectoral impacts and tax design.
It highlights potential industry consequences: higher operator costs, likely increases in prices or lower payouts for customers, and possible impacts on retail operators and horse racing that had earlier raised concerns during consultations.
Context and relevance
This is a major fiscal shift for the UK gambling industry. If you run, work for, invest in or supply the sector — from online operators and retail bookmakers to affiliates and horse-racing stakeholders — this changes revenue models, pricing strategies and regulatory conversations. It also fits a wider trend of governments re-examining online gambling taxation and the balance between raising revenue and limiting harm.
Author style
Punchy: this isn’t a tweak — it’s a sizeable tax shock. The story matters now because the rises are scheduled and will affect margins, consumer prices and sector economics immediately and into 2027. Operators need to be planning pricing, product and compliance moves right away.
Why should I read this?
Short answer: because this will sting wallets and profits. If you’re involved in UK gambling — clever to know how and when this lands so you can plan pricing, communications and partnerships. If you’re watching the sector for investment or policy reasons, it signals tougher fiscal scrutiny and potential behavioural shifts in players.
Source
Source: https://igamingbusiness.com/finance/uk-sector-hit-with-remote-gaming-duty-increase/
