The regulated gambling market in the UK is showing clear signs of a reduction in early 2026. An increasing number of licensed operators are either reducing marketing expenses or preparing to exit the market. Higher tax rates and strict bonus limitations have eroded profit margins, prompting operators to seek alternative, more profitable options outside the region. The UKGC has also stepped up regulatory efforts. Its Trust Statement for 2024/25 reveals 9700 compliance actions in 2024/25, almost double that of the previous year.
UK Gambling Market Braces for Impact Amid Regulatory Reforms and Operator Migration: A Quick Summary of the Key Points
- Starting from January 19, 2026, licensed gambling operators must restrict bonus wagering to a maximum of 10x. The Remote Gaming Duty will increase from 21% to 40% from April 1.
- Licensed gaming operators have begun scaling down operations or plan to exit the UK market by March. Others have adjusted their earnings before interest shortly after the government announced the tax hike in November 2025.
- The Gambling Commission revealed it had carried out 9,700 enforcement actions in 2024/25, compared to 4,200 in the previous year. It contributed GBP 3.04 million (roughly €3.5 million) to the Consolidated Fund in the last fiscal year.
Tax Hike and Bonus Restrictions Behind Operator Exodus
The UK Gambling Commission is preparing to introduce several reforms to its gambling guidelines in 2026. Starting from January 19, the bonus wagering requirements at licensed online gambling sites will be limited to 10x. The gambling regulator published the proposed changes to the Licence Conditions and Codes of Practice (LCCP) Social Responsibility (SR) Code 5.1.1 (Rewards and Bonuses) in July 2025.
Additionally, operators can no longer bundle multiple gambling promotions into a single offer. While the new regulations protect consumer interests and simplify the rules, they come at a time when operational expenses are about to increase. In November, the Gambling Commission announced an increase in the Remote Betting Duty from 21% to 40% from April 1, 2026.
The effects of the twofold blow are starting to be felt across the market. Several licensed operators have begun scaling down marketing expenses, while others are preparing to exit the region by March 2026. In November, Evoke plc, the owner of William Hill and 888casino, announced a significant reduction in investments in the UK market.
CEO Per Widerström pointed out the operational challenges arising from the tax hike as the primary reason behind the difficult decision that the company has had to make. He highlighted that the latest tax hike will harm the UK’s regulated gambling sector and pose significant challenges for player safety.
Widerström said:
The decision today by the UK government to substantially raise taxes is highly damaging for the economy and consumers. As an industry, we have consistently warned of the significant impact on jobs, investment in the UK, and player protection that these changes would have, yet sadly, the Government has chosen not to listen. These proposals are ill-thought-through, counterproductive, and highly damaging. It is clear these changes will significantly harm businesses, employees, and customers.
The CEO explained that the company would immediately implement mitigation plans, including a reduction in investments and job cuts. He also cautioned that black market gaming platforms would capitalise on the instability.
Widerström continued:
We will begin immediately on executing our mitigation plans, which involve a significant reduction in investment into the UK, and, very regrettably, the likely need for thousands of jobs to be cut up and down the country. As a result of the actions now required, these tax changes will reduce the overall level of tax the regulated industry pays in the UK, and more importantly, it will have a significant negative impact on player protection, as these changes will incentivise activity moving to the illegal and dangerous black market.
UKGC’s Trust Statement for 2024/25 Highlights Key Compliance Challenges
The UKGC published its Trust Statement for 2024/25 on Wednesday, January 7. The report highlights the key challenges the operator had to encounter while dealing with increasing policy scrutiny and operational expenses. The scale of the UKGC’s new responsibilities is evident from the higher running costs during the last fiscal year.
Total operating expenses jumped from GBP 40 million (approximately €46.08 million) to GBP 60 million (nearly €69.12 million) year-on-year (YoY) between 2023/24 and 2024/25. Personnel expenses contributed majorly to the change, with staff costs rising from GBP 24 million (roughly €27.65 million) to GBP 27.8 million (nearly €32.02 million) YoY. The number of employees also increased by 11% to 416 by the end of the year.
The Gambling Commission has also cracked down heavily on compliance violations. The enforcement and compliance teams processed nearly 9,700 compliance actions in the last year, almost double that in 2023/24. Sanctions in 24 cases generated GBP 4.2 million (roughly €4.84 million) in penalties, down from GBP 7.2 million (approximately €8.29) in the previous year.
The gambling watchdog views this development as a sign of improving regulatory compliance standards. Last year, the Gambling Commission took several measures to improve compliance. In September, it published a report on black-market gambling operations and signed a follow-up MoU with the Dutch Gambling Authority in November for increasing cross-border cooperation.
Andrew Rhodes, CEO of the UKGC, expressed optimism at the outcome of the efforts in 2024/25 related to consumer protection and the prohibition of unregulated gambling operations. The CEO reiterated his commitment to safeguarding consumer interests and promoting a fair and transparent gambling ecosystem.
Rhodes said:
Great work was done in 2024/25, and it is fair to say the Commission will be looking to take great strides in moving the work forward and in making gambling safer, fairer and crime-free. For that, we as a Commission now view it as a chance to seize this year.
As the UK prepares to embrace new gambling guidelines and tax brackets, all eyes will be on how the market reacts to these changes. Despite repeated caution from industry stakeholders, the UKGC has yet to take note. It remains to be seen how the Commission plans to regulate the sector as the UK’s gambling market enters a new era of compliance and enforcement.