Chancellor Rachel Reeves has announced major tax increases for UK betting operators.
In the November Budget, the government increased Remote Gaming Duty from 21% to 40%. The new rate starts in April 2026. The government will also introduce a new 25% remote General Betting Duty on online sports betting from April 2027.
The Treasury expects the changes to raise an extra £1.1 billion in gambling taxes by 2029-30.
Meanwhile, the bingo sector received a tax cut. The government will remove the current 10% bingo duty from next April.
Operators Face Rising Costs
Rank Group, owner of Mecca Bingo, expects a £45.5 million hit to profits. The company linked the impact to higher taxes and rising staff costs.
Entain expects the new taxes to cost an extra £200 million each year. However, the company plans to offset part of the increase by reducing marketing and promotions.
Evoke, owner of William Hill and 888, expects costs to rise by around £125 million from 2027. The company also plans to reduce UK investment to manage the impact.
Job Losses and Black Market Risks
Industry experts warn that higher taxes could damage the regulated gambling sector.
The Remote Gaming Duty increase could remove almost 15,000 technology jobs. It could also push more than £4 billion in gambling stakes to unlicensed operators.
The new sports betting duty creates further concerns. Experts believe another £2 billion in stakes could move offshore. The sector could also lose another 1,750 jobs.
In total, almost 17,000 jobs could disappear across the industry. Many affected regions already face economic pressure.
Experts also warn that more than £6 billion in stakes could move into the black market. Online customers can switch operators quickly, especially when offshore sites offer better value.
International Markets Show the Risks
International markets already show the dangers of higher gambling taxes.
The UK will soon have the highest online gaming taxes in Europe. When the Netherlands raised slot taxes to 34.2%, legal market revenue fell sharply. Black market activity also increased beyond 50%.
Higher taxes rarely reduce gambling demand. Instead, they often push customers toward unregulated operators.
Compliance Must Remain a Priority
The next few months will prove critical for the gambling industry. Operators will now review costs and search for savings across their businesses.
Flutter Entertainment alone expects the tax changes to cost around £425 million.
However, operators must avoid cutting corners in key compliance areas. Responsible gambling and anti-money laundering controls remain essential.
The UK Gambling Commission will likely increase compliance monitoring during the next 12 months.
Staff training will become even more important during this period. Businesses should continue investing in gambling compliance, safer gambling, and AML education to protect both customers and licences.