UK Online Casino Tax Rises to 40 Percent 02 December 2025

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Author: Sara G. - Last reviewed: 2 December 2025

UK to Almost Double Online Casino Tax: Remote Gaming Duty Rising from 21% to 40%

The UK government has announced a major tax hike on online casinos and other remote gaming operators, with Remote Gaming Duty (RGD) set to jump from 21% to 40% from 1 April 2026.

The change was confirmed in Chancellor Rachel Reeves’ Autumn Budget and is part of a wider shake-up of gambling duties aimed at raising over £1 billion per year for the public finances.

Key facts at a glance

• What’s changing?

  • Remote Gaming Duty (RGD) on online casino-style games (slots, roulette, blackjack, bingo, poker etc.) will increase from 21% to 40%.

• When?

  • The new 40% rate applies from 1 April 2026, for accounting periods starting on or after that date.

• Who does it affect?

  • Operators offering remote gaming to UK customers, including online casinos, slot sites, online bingo and poker rooms.

• Other gambling tax changes:

  • A new 25% General Betting Duty rate for remote betting (online sports betting) will kick in from 1 April 2027, up from 15% now (UK horseracing bets stay at 15%).

  • Bingo Duty (10%) will be abolished from 1 April 2026, reducing the tax burden for land-based bingo clubs.

Why is the UK increasing online gambling tax?

The government says the move targets parts of the market linked to the highest levels of gambling harm, particularly online slots and casino games, and follows strong growth in the remote sector:

• Remote gambling now accounts for around 60% of total Gross Gambling Yield (GGY).

• Recent Gambling Commission figures show UK operators making £16.8bn in GGY, with a big jump from online play.

Officials argue that the online sector has “grown up” and can sustain a higher tax burden while helping to fund welfare and other public spending commitments.

Reaction from the gambling industry

The announcement has been described as a “hammer blow” by industry groups and listed operators:

• Gambling stocks such as Entain, Evoke (888/William Hill), Flutter and Rank slid after the plans were flagged by the Office for Budget Responsibility and confirmed in the Budget.

• Analysts expect profit margins to be squeezed, with some companies warning of:

  • Job cuts and reduced UK investment.

  • Possible consolidation or exits from the UK market by smaller brands.

Industry bodies are also warning that sharper taxes could push more customers towards unlicensed offshore sites, where consumer protections are weaker.

What it could mean for UK players

Although the tax is paid by operators, many experts expect some of the cost to be passed on to customers over time. Government analysis suggests up to 90% of the extra duty may ultimately be pushed onto players via lower odds or reduced generosity, which in turn will slightly reduce overall demand.

For everyday players, this could mean:

• Fewer or smaller bonuses and free spins

• Lower-value loyalty/VIP rewards

• Tighter wagering requirements on promos

• Slight changes in game selection or staking limits as operators optimise margins

How obvious these changes will feel to an individual player will depend heavily on the brand and its current UK exposure.

What it means for affiliates

For casino and betting affiliates, the tax rise doesn’t hit you directly – but it will influence operator behaviour, and therefore commissions and offers:

• Revenue-share deals:

  • Higher tax on operator profits may reduce the net revenue that rev-share is calculated on, potentially shrinking long-term earnings per player.

• CPA (cost-per-acquisition) deals:

  • Some brands may trim CPA amounts or become more selective with partners, especially for high-risk verticals like slots.

• Promotions and conversion:

  • Expect pressure on welcome bonus sizes and ongoing promotions, which can impact conversion rates from your traffic.

• Brand mix:

  • Smaller operators might cut back or exit the market, while larger brands consolidate share – affiliates may end up promoting fewer, bigger brands with more stable terms.

Gambling involves risk. Please only play with money you can afford to lose, and use UK Gambling Commission-licensed sites that offer safer gambling tools. If you’re worried about your gambling, support is available from organisations like GamCare and BeGambleAware.