The United Kingdom(UK) is set to undergo one of its most notable overhauls in gambling taxation in recent years, with a significant hike in online gaming duties. Starting in April 2026, the remote gaming duty will be increased from 21% to a substantial 40%. UK Gaming Tax
Additionally, a new 25% duty on online betting will be introduced in 2027. These changes are anticipated to boost government revenue from gambling taxes, with forecasts predicting collections reaching approximately £4 billion in the fiscal year 2025–26 and climbing further to around £5 billion in 2026–27.
The rise in online gaming duty to 40% marks a considerable shift in the UK’s approach to taxing digital gambling activities. According to the Office of Budgetary Responsibility’s autumn analysis, this increase will place a heavier financial burden on online casino operators, including those based offshore but serving UK customers. Industry estimates suggest that operators might pass up to 90% of this additional tax onto players, which could lead to a decline in consumer demand. Consequently, this could result in a reduction of the projected tax revenue by approximately £500 million by the end of the decade.
Alongside the duty hike on remote gaming, the government has announced plans to implement a 25% general betting duty for online betting, effective from April 2027. This marks an increase from the current rate of 15%. The new rate will specifically target profits from online betting activities, excluding spread betting, pool bets, and horserace betting. Self-service betting terminals will also be exempt from this duty. This adjustment comes after consultations aimed at streamlining and consolidating the UK’s gambling tax framework, seeking to make the system more coherent and manageable.
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The fiscal implications of these reforms are significant. The government projects that gambling tax revenues will reach £4 billion in the 2025–26 period, reflecting a nearly 10% increase from previous figures. A further escalation to £5 billion is expected the following year, representing almost a 25% jump.
These forecasts underscore the pivotal role that the revised tax structure is expected to play in shaping future public finances. Meanwhile, the budget also plans to eliminate the existing 10% bingo duty and freeze casino gaming duty bands for 2026–27. While this freeze prevents immediate rate hikes, the static thresholds mean that more casino revenues will be pushed into higher tax bands during this period, potentially increasing the overall tax take from the sector. UK Gaming Tax
