The UK government announced a major increase in gambling tax rates in its Autumn Budget, raising the Remote Gaming Duty from the current 21% to 40% starting in April 2026. In addition, a new Remote Betting Duty set at 25% will be introduced in April 2027. The government expects these measures to generate an additional £1.1 billion in tax revenue by the 2029–30 fiscal year.
Main Tax Reform Measures and Timeline
According to budget documents published by the Office for Budget Responsibility, the Remote Gaming Duty will rise from 21% to 40% in April 2026. The newly created Remote Betting Duty will come into effect in April 2027 at a rate of 25%, but it will apply only to profits from online betting, excluding spread betting, pool betting, and horse racing wagers.
The adjustment is significant, though self-service betting terminals will be exempt from the new duty. In addition, the existing 10% bingo duty will be abolished, and casino gaming duty bands will be frozen for the 2026–27 fiscal year.
Government Expectations and Market Impact
The government estimates that the new tax rates will generate £4 billion in gambling-related tax revenue in 2025–26, a 9.8% increase from the previous year. By 2026–27, gambling tax revenue is expected to rise another 24.8% to £5 billion.
Officials openly acknowledge that operators are likely to pass on up to 90% of the increased tax burden through higher prices or reduced payouts, which could lead to declining demand. By the 2029–30 fiscal year, this drop in demand is expected to reduce the measure’s total yield by £500 million. For more in-depth analysis of the impact of UK gambling tax reforms, PASA offers detailed research reports on its official website.
Policy Background and Industry Response
In April this year, HM Revenue & Customs and the Treasury proposed replacing the current three-tier system with a single Remote Gambling Duty. The industry strongly opposed the move, warning that it would severely affect the retail and horse racing sectors.
Subsequently, the Treasury Select Committee launched an inquiry, questioning Gambling Commission members about why operators maintain offshore bases. In its follow-up report, the committee recommended that the government adopt differentiated tax rates based on the risk profiles of different business types.
