Major Changes in the UK as Online Gaming Duty Rises to 40%
The UK has announced one of its most significant gambling tax reforms in years, raising remote gaming duty from 21% to 40% in April 2026 and introducing a 25% duty for online betting in 2027. These measures are projected to lift gambling tax receipts to £4 billion in 2025–26 and £5 billion in 2026–27.
Online Gaming Duty Increases to 40%
Remote gaming duty will rise to 40% from April 2026, according to the Office of Budgetary Responsibility’s autumn budget analysis. The higher rate places a considerably heavier tax burden on online casino operators, including offshore companies serving the UK market. Government estimates indicate that operators may pass up to 90% of the additional duty on to customers, which is expected to lower demand and reduce the measure’s yield by £500 million by 2029–30.
The Government will introduce a 25% general betting duty for remote betting in April 2027, an increase from the current 15%. The new rate applies only to online betting profit and excludes spread betting, pool bets and horserace betting. Self-service betting terminals are also exempt. The change follows earlier consultations aimed at consolidating and simplifying the UK’s gambling tax framework.
Gambling Tax Receipts Set for Significant Growth
The new measures are expected to increase gambling tax receipts to £4 billion in 2025–26, representing a 9.8% rise year-on-year. A further increase to £5 billion is forecast for 2026–27, marking a 24.8% jump. These projections highlight the central role the updated taxation structure will play in future fiscal planning.
The budget removes the current 10% bingo duty while freezing casino gaming duty bands for 2026–27. Although the freeze avoids a direct rate increase, static thresholds mean more casino revenue will fall into higher bands during that period.