UK Government Confirms Major Tax Increase for Online Betting Sector in Latest Budget
Reeves announced changes that are forecast to generate an additional £1.1bn a year by 2029–30, placing fresh financial pressure on one of the UK’s fastest-growing industries, which reported £12.6bn in revenue last year.
UK online gambling operators are facing a multi-billion-pound tax increase after Chancellor Rachel Reeves confirmed sweeping duty rises targeting digital betting and casino platforms in her latest budget.
Reeves announced changes that are forecast to generate an additional £1.1bn a year by 2029–30, placing fresh financial pressure on one of the UK’s fastest-growing industries, which reported £12.6bn in revenue last year. The announcement triggered an immediate reaction across the stock market, with shares in several listed gambling groups falling even before the measures were formally unveiled, following the early release of an Office for Budget Responsibility (OBR) document confirming the sector would face higher taxation.
By the end of the day, major operators including Rank Group, Evoke and Entain had either downgraded profit expectations or warned that job losses could follow as a result of the reforms.
Entain, the owner of Ladbrokes, said it was “deeply appalled” by the measures, estimating they will reduce underlying profits by £150m by 2027. The industry’s trade body, the Betting & Gaming Council (BGC), described the announcement as a “devastating hammer blow” for the sector.
The most significant policy change is the near-doubling of Remote Gaming Duty (RGD) on online casinos, which will rise from 21% to 40% from April next year — a sharper increase than many industry analysts had predicted.
Meg Hillier, Chair of the Treasury Select Committee, defended the government’s stance, saying the Chancellor had resisted industry “scaremongering”, which had been criticised in a recent parliamentary report.
“Some parts of the gambling industry, such as racecourses and bingo halls, make a cultural contribution to our country,” she said.
“This is not the case, though, for online slots and other remote gaming, which can quickly drain the bank balances of vulnerable people after just a few clicks of a button on a phone.
“It’s reassuring to see that the chancellor agrees with us on this and I look forward to discussing it further with her when she appears in front of us in December.”
In addition to RGD, General Betting Duty on online sports wagers will rise from 15% to 25% from April 2027, though rates for bets placed in physical bookmakers will remain unchanged. Bets on horse racing have been exempted from the increase in recognition of the sport’s reliance on gambling-related income, while the current 10% bingo duty will be abolished from April.
Reeves said the tax rises were focused on digital betting because it is “associated with the highest levels of harm”. However, Machine Gaming Duty on high-street slot machines has been left unchanged, despite longstanding concerns around addiction linked to physical gaming machines.
Industry leaders have warned the policy could have wider consequences for employment and investment. Grainne Hurst, Chief Executive of the BGC, said the measures represented a “devastating hammer blow to tens of thousands of people working in the industry” and would risk long-term damage to the sector’s contribution to the UK economy.
