The UK government has backed the Treasury Committee’s view that taxes should rise on online gambling. Meanwhile, horse racing betting and land-based gambling will not face any tax hikes. The government is projecting more than £1 billion (approximately €1.15 billion) in additional tax revenue from the reformed tax framework. Authorities are targeting areas of gambling that they view as more harmful to public health.
UK Government Approves Treasury’s Views on Taxing Online Gambling at a Higher Slab: Quick Summary
- The UK government has backed the Treasury Committee’s call to increase the remote gaming duty from 21% to 40% starting from April 1, 2026. Remote sports betting will increase from 15% to 25% on April 1, 2027.
- Horse racing betting and land-based casino gaming will not see any tax increases. Authorities have proposed abolishing bingo duty in April 2026 as part of the new tax regime.
- The government projects the tax increases to generate more than £1 billion (approximately €1.15 billion) in additional annual revenue. An official spokesperson labelled the measure as a “victory for common sense”.
Remote Gaming Duty Increases to 40% and Remote Betting Duty to 25%
The UK government, in a recent press release published on Thursday, January 22, has reiterated its support for the Treasury Committee’s view on raising online gambling taxes. Lawmakers argue that taxes on online gambling should be increased to compensate for its higher potential for gambling harm. Meanwhile, taxes on horse racing and bingo should not be increased since they do not pose a significant threat to public safety.
In November, the Revenue and Customs Department confirmed plans to increase taxes on online gambling. While the remote gaming tax was raised from 21% to 40%, the remote betting tax increased from 15% to 25%. The new tax structures will take effect on April 1, 2026 and April 1, 2027, respectively.
The government backed the Treasury Committee’s decision, noting that online gambling should be taxed more heavily than other forms of gambling. Authorities cited reports of expanding online gambling operators, including black market activities, to justify the tax hike. Officials have projected more than £1 billion (approximately €1.15 billion) in additional revenue every year, courtesy of the new tax brackets.
Dame Meg Hillier, Chair of the Treasury Committee, welcomed the decision in comments released alongside the government statement.
Hillier said:
The decision by the Chancellor to use her Budget to increase taxes on online gambling is a victory for common sense. The Chancellor has made the right decision in agreeing with my committee that the tax rate for remote betting, including highly addictive casino games, should reflect the harm it inflicts.
Government Rejects “No Social Ills” Testimony from Industry Stakeholders
Last year, lawmakers submitted a proposal to parliament to increase taxes on online gambling to compensate for a fiscal deficit. Authorities also noted that higher taxes were necessary to counter the rising cases of gambling harm, categorically rejecting the Betting and Gaming Council’s stance that online betting poses “no social ills”.
Grainne Hurst, CEO of the Betting and Gaming Council (BGC), argued that gambling causes social harm. In official communications, the BGC often highlights the risks posed by black market gaming as well as the need to protect jobs in the UK’s gambling sector. Hurst acknowledged that some people do suffer harm from gambling, but the Committee criticised the broader position presented.
Hillier said she was “flabbergasted” by the comments and argued they were not defensible.
Responding to Hurst’s comments, Hillier noted:
While I accept that parts of the gambling industry make an economic and cultural contribution to the UK, I am frankly flabbergasted that representatives from the betting sector could not accept that certain forms of gambling, such as highly addictive online casino games, cause social harm for some people. I don’t believe that is a defensible position.
The new tax hike will reshape how gambling operations are conducted in the UK. The market is showing early signs of operator exodus, although authorities seem unbothered by the developments. Gibraltar has expressed concerns that the proposed tax hikes could affect the region’s revenue base.
In a ministerial statement issued in December, the government cautioned that increasing gambling taxes would harm Gibraltar’s revenue streams and risk fiscal projections, since many remote gambling companies licensed in Gibraltar operate in the UK. As the UK prepares to implement the new remote gaming duty from April 1, all eyes will be on how the market reacts to the change.