UK Announces Major Overhaul of Gambling Tax
The UK Government has announced significant changes to gambling tax duties in an effort to raise over £1 billion per year to support ailing public finances and tax sustainability. The reforms signify a clear shift in gambling policy by the government and raise implications for consumers and online operators regarding profitability, pricing, product mix and long-term sustainability in the UK market.
The recent announcement of significant gambling tax reforms in the UK as part of the Autumn 2025 UK Budget are notable for directly impacted UK stakeholders but also the Australian industry in the context of the response to the Queensland Racing Review (and, in particular, the decision not to reduce the point of consumption tax rate) and the publication by Responsible Wagering Australia (RWA) of research regarding the illicit offshore market and the impact of taxes and fees in supporting its growth.
UK Reforms
The UK Government has announced significant changes to gambling tax duties in an effort to raise over £1 billion per year to support ailing public finances and tax sustainability. The reforms signify a clear shift in gambling policy by the government and raise implications for consumers and online operators regarding profitability, pricing, product mix and long-term sustainability in the UK market.
With the changes set to take effect out across two key dates, 1 April 2026 and 1 April 2027, there will be a significant uplift in remote gaming duty and general betting duty, respectively.
The key tax changes are as follows:
1. Remote Gaming Duty
The UK applies a levy for all gaming operators that offer games which can be played online or outside the confines of a land-based bookmaking venue. This applies to games such as online casino, slots, bingo and any gaming over the internet, telephone, television, radio, or any electronic communication technology. Racing and sports betting is not included in the remote gaming duty base.
As of 1 April 2026, the Remote Gaming Duty will increase from 21% to 40%.
2. General Betting Duty
The general betting duty applies to operators who accept wagers that are placed remotely rather than within a physical betting venue. It captures bets made through digital channels such as online platforms, mobile applications, telephone services or other electronic communication systems.
As of 1 April 2027, the duty for these rates will increase to 25%.
This adjustment will not apply to remote bets made on UK horseracing nor will it affect those made using self-service betting terminals located in licensed physical venues or other betting types such as spread betting and pool betting. The duty for these services will remain at 15%.
3. Abolition of Bingo Duty
From 1 April 2026, the existing bingo duty will be repealed, meaning bingo operators (premises-based or otherwise) will no longer pay the 10% duty which they were previously subject to. The Government has advised that this measure is to support land-based bingo venues which are recognised as being lower-risk and culturally important and is consistent with the focus of the tax reforms on remote gaming providers.
Government rationale
According to the policy statement accompanying the duty change announcement, the Government’s rationale is twofold: fiscal and social.
As noted above, the changes are projected to generate over £1 billion per year in tax revenue and will contribute to public finances the policy objective of creating a “fair, modern and sustainable tax system”.
With remote gaming seeing the steepest duty increase, the Government claims remote games like online casinos and slots see lower operating costs but pose greater potential harm compared to other forms of gambling and, as such, the increases should “disincentivise gambling companies from pushing consumers towards what are considered more harmful products.”
At the same time, the Government has sought to balance its approach by distinguishing between remote gaming and remote betting (e.g. particularly on racing), with the latter being seen as less risky and explains why remote betting is subject to a lower tax increase than remote gaming.
The abolition of the bingo duty is also part of an effort to simplify the tax system, reducing the number of discrete “gambling duties” operators need to navigate although, in our view, various complexities will remain in navigating the tax framework (similarly to Australia).
Implications for remote gaming operators
The considerable duty increase for remote gaming operators has seen both scale and smaller players flagging material impacts on earnings, job cuts and marketing and sponsorship reductions in a bid to offset the impacts of the increases. Concerns have been raised that these pressures will result in increased prices and further reduced competitiveness against offshore businesses that are not subject to the same regulatory oversight or cost imposts.
Concerns in Australia
Similar concerns have been a trending topic in Australia with RWA (RWA) releasing a report in late November 2025 on the growing threat of illegal offshore gambling. The report observed that local growth in offshore gambling has been driven by similar structural and regulatory pressures. Despite online casino gaming being expressly prohibited under the Interactive Gambling Act 2001, the RWA Report indicates that Australians are increasingly seeking these products offshore, with online casino and gaming now representing 26% of all online gambling expenditure. From a betting perspective, in addition to pricing advantages, consumers also cite broader product availability and unrestricted in-play betting as attractions for directing their spend offshore.
The RWA report states that 36% of Australia’s online betting and gaming market, valued at $3.9 billion in 2024, is now occurring with illegal offshore operators (with the latter seeing growth of 14% over the past two years against declines of 5% in the onshore regulated betting market).
As the UK reforms take effect, it will be important for Australian policy makers to observe both the operator and consumer response as inputs into potential regulatory reforms.
About Senet
Senet is a multidisciplinary Australian firm specialising in gambling and gaming law, regulatory compliance, and business advisory services. We are the largest specialist team in Australia and based in Victoria. Our team is deeply immersed in the industry, often sharing insights at public speaking events, and our principals have held executive roles in a global ASX-listed entity and a 'Big Four' advisory firm, giving us a unique perspective on the challenges our clients face.
If you have any questions or would like to discuss the topics covered in this article, please contact the team at Senet.
