UK to nearly double online gaming duty as Rachel Reeves’ budget targets gambling sector
Summary
Chancellor Rachel Reeves has announced a major tax overhaul for the UK gambling industry. Remote Gaming Duty (RGD) will rise from 21% to 40% from April 2026, and a new General Betting Duty on online sports bets will increase to 25% (from 15%) in 2027 — excluding horse racing, spread betting, pool bets and retail shops. Bingo duty will be abolished and casino gaming duty bands frozen. The Office for Budget Responsibility (OBR) expects the package to raise around £1.1 billion a year by 2029-30 (down from an estimated £1.8bn if betting volumes and behaviour had stayed constant). The government says operators may pass up to 90% of the increases to customers, and will give the Gambling Commission £26m over three years to fight illegal offshore sites.
Key Points
- Remote Gaming Duty (RGD) increases from 21% to 40% from April 2026.
- New General Betting Duty rises to 25% from 15% in 2027 for online sports wagers (exclusions apply).
- Bingo duty is being scrapped; casino duty bands will be frozen.
- OBR estimates the measures will net £1.1bn a year by 2029-30 (vs £1.8bn without expected behavioural change).
- Government warns operators could pass up to 90% of the duty rise to customers via worse odds and smaller bonuses.
- Gambling stocks swung on the announcement: Evoke (William Hill, 888) fell ~18%, Rank jumped ~10%, Entain rose ~3.4%.
- Major operators forecast profit hits: Entain ~£100m (next year) and £150m (2027); Evoke ~£135m extra duty costs; Rank ~£40m operating profit hit.
- £26m funding over three years to the Gambling Commission to counter migration to illegal offshore sites.
- The UK gambling sector took in about £12.6bn from customers last year.
Context and Relevance
This is a sweeping fiscal change that reshapes the economics of online gambling in the UK. It follows HMRC/Treasury proposals to consolidate gambling tax categories into a single remote duty and responds to pressure from think tanks and political calls for higher contributions from the sector to fund social measures. The move is pitched as tackling gambling-related harm and raising funds for policy priorities (including removing the two‑child limit on child benefit), but industry bodies warn it will accelerate market consolidation, push players to unlicensed operators, and hit jobs and margins hard.
Why should I read this?
If you work in iGaming, betting, finance or regulation — pay attention. This changes pricing, margins and competitive dynamics overnight. For everyone else: it could mean worse odds and fewer promos if you bet online, and a bigger push from government to control harmful betting behaviour. Short version — this matters if you care about industry profits, consumer prices or the rise of offshore black‑market sites.
