UK Sharply Increases Taxes for Online Operators: iGaming Under Fire

The UK government has approved a large-scale tax reform that fundamentally changes the rules for the digital sector. The primary impact will be on online casinos and betting platforms, as authorities plan to raise over $1.3 billion (£1 billion) for the budget by significantly increasing rates for the remote segment.

Tax Increase Schedule:

• From April 1, 2026: The tax on online casinos (Remote Gaming Duty) will soar from 21% to 40%.
• From April 1, 2027: The tax rate for online betting will rise from 15% to 25%.

Support for the Land-Based Sector and Bingo: Unlike the online segment, traditional gambling establishments will maintain their current tax regimes. Furthermore, from April 2026, the government is completely abolishing Bingo Duty (currently 10%) to support local bingo halls as socially significant leisure venues. Rates on horse racing will also remain unchanged in recognition of the industry’s existing contributions to the statutory Horserace Betting Levy.

Reasons and Social Context: HM Revenue & Customs and the Treasury Committee justified the decision by citing the rapid growth of addiction to mobile gaming. Official statements emphasized:

• Modern digital products are designed for maximum player retention, which carries high social risks.
• The market share of online operators has grown several times over the last decade, yet their contribution to addressing social issues is deemed insufficient.

Dame Meg Hillier, Chair of the Treasury Committee, called the move a “victory for common sense,” noting that taxes will now reflect the real harm caused by the most addictive forms of gambling.

The reform is part of the Treasury’s strategy to create a sustainable tax system where the burden is distributed proportionally to the potential risks to society.

Sources: Official UK Government website (GOV.UK), UK Parliament — Treasury Committee, House of Commons Library.