Date: 15.01.2025

by Adam Dworak

Last update: 14.01.2025 09:29

Online Gambling in the UK: Market Insights and Future Prospects

The United Kingdom remains one of the most crucial iGaming markets worldwide. In 2025, the industry is set to encounter numerous challenges, which we delve into in the article below. Additionally, we present our predictions for the future of this evolving market.

Key iGaming Market Worldwide

The online gambling market in the United Kingdom is one of the most developed and regulated in the world. According to data published by the Gambling Commission in February 2024, the total gross gambling revenue from online gambling reached £6.5 billion. This represents an increase of 2.8% compared to the previous year.

The UK online gambling market features key players from both domestic and international companies that hold licenses issued by the UK Gambling Commission. Over 200 bookmakers and almost the same number of online casinos operate legally in the UK, reflecting the high level of competition and diversity of offerings for players.

In 2025, the UK iGaming industry will have a lot to monitor. It is expected that the government will address tax issues, legislation, and tighter restrictions related to responsible gambling.

Major Players in the UK iGaming Market

The UK iGaming market is dominated by a few key players. Among them is Bet365 Group, which offers a wide range of sports betting, casino games, poker, and bingo.

Entain also holds a strong position in the UK market, with renowned brands like Ladbrokes, Coral, and PartyPoker in its portfolio. The company actively expands its operations in regulated markets. Similarly, William Hill, managed by 888 Holdings, has been a market leader in the UK for years.

The 888 Holdings group itself provides comprehensive services, including casino games, poker, sports betting, and bingo. Leveraging advanced gaming technology and innovation, the company continues to expand its presence in this market.

Another notable player is Paddy Power, part of Flutter Entertainment. Betfred also stands out, especially in the context of sports betting, which has become deeply ingrained in British culture. Both companies maintain a strong foothold in the competitive UK market.

The Industry Avoids Tax Changes but Faces Burden in Combating Addiction

Gambling regulations in the United Kingdom are based on the Gambling Act of 2005, which governs all forms of gambling, including land-based and online casinos, sports betting, lotteries, bingo, poker, and other gambling activities. Gambling tax rates vary depending on the type of game.

In the fall of 2024, it was confirmed that gambling taxes in the UK would remain unchanged. The industry had been apprehensive about potential changes due to public discussions suggesting such adjustments.

According to the autumn budget announced by Chancellor Rachel Reeves, gross gambling revenue tax rates will remain stable from April 1, 2025, to March 30, 2026.

While immediate tax hikes were avoided, the gambling industry now faces a new annual levy of £100 million to fund research and treatment for gambling-related issues.

Despite the relief provided by this budget, the government plans to revisit gambling tax reform in 2025. The current tax structure in the UK includes a 15% duty on general betting revenue and a 21% rate on online gambling. Therefore, significant tax-related shifts may lie ahead in 2025.

Tax Reform Following an In-Depth Review?

The Gambling Act is also undergoing a comprehensive review. The Gambling Commission (GC) and the Department for Culture, Media and Sport (DCMS) are conducting an in-depth analysis to measure the impact of the Gambling Act Review.

This initiative follows the Government’s White Paper from April 2023. In March 2024, the GC and DCMS announced a partnership with the National Centre for Social Research (NatCen) to develop an evaluation framework for the Gambling Act Review.

The framework includes research questions, methodologies, and governance structures. The evaluation will assess the effectiveness of over 60 measures introduced during the review and their impact on stakeholders.

Given the broad scope of the Gambling Act Review, prioritization is essential. Stakeholder engagement is planned for 2025, potentially yielding further insights for the industry.

Responsible Gambling

Another critical aspect of the UK iGaming industry could be the introduction of additional regulations related to responsible gambling. In November 2024, GambleAware reported a significant increase in the number of people seeking help through the National Gambling Support Network (NGSN).

Compared to the previous year, over 10% more individuals received treatment for gambling-related harm. The report also highlights the broader consequences of such harm. Among those treated, 66% of respondents admitted to having gambling-related debts. Additionally, 24% experienced the loss of a relationship, and 11% lost their jobs.

Furthermore, 15% of people seeking support did so because of someone else’s gambling, marking an increase from the five-year average of 13%. This underscores the far-reaching impact of gambling-related harm.

Given the sensitivity of this issue, the government may address it by establishing new regulatory frameworks to mitigate these significant statistics. The aforementioned £100 million annual levy is a first step in this direction. However, it is expected that regulators may introduce additional programs aimed at raising awareness among players.

Our Predictions

The year 2025 in the UK iGaming industry appears to be marked by uncertainty. The growing popularity of online gambling in the UK brings new challenges that must be addressed through regulation. We anticipate that the UK will review its current legislation, though no tax changes are likely to be introduced. These adjustments may only come into effect in 2026.

However, we believe significant developments could occur in the area of responsible gambling, which is gaining increasing prominence in many Western countries. Restrictions on advertising and the expansion of self-exclusion programs are fostering greater caution in gambling practices.

We expect responsible gambling to become a key focus in the UK in 2025. While online gambling is widely accessible, it also poses risks to many players. Therefore, we foresee further tightening of regulations in this area.

When it comes to the market dominated by the largest firms, we do not anticipate significant changes. Brands operating in the UK are already deeply ingrained in public awareness, and their substantial budgets and widespread popularity suggest a low likelihood of major shakeups.