UK gambling braces for remote gambling levy set to become 40%

• UK subverts expectation – introduces a much higher remote gambling duty rate at 40%
• The measure is tailored to raise additional money from the sector, but it risks undermining its competition
• Industry types argue that jobs will be affected and investment – scaled down as a result

Gambling firms in the United Kingdom have long feared that the country’s remote gambling levy would reach 35% under a new budget by Chancellor of the Exchequer Rachel Reeves.

They need not worry anymore, as the remote gambling duty has now been officially set at 40% in the budget statement. Come April 2026, companies would have to pay 40% in tax, which is the biggest change to the tax code applicable to the industry.

The UK online gambling sector braces for its largest tax hike to date

RankGroup, Entain, and Evoke have already hurried to adjust their financial results and forecasts and have issued statements commenting on the matter.

"In addition, the significant increases in duties reduce the commercial rationale for licensed operators such as Evoketo to invest in the UK market and, consequently, the Board believes that several thousand UK jobs in the betting and gaming industry will be lost as a direct result.

This will mean substantially lower investment from the industry into UK sports, especially horseracing, placing elements of the broader betting and gaming supply chain at severe risk," the company said in a statement.

Matej Novota, Head of Casino Research, had this to add: "A significant jump in tax rate may make licensed operators less competitive, driving consumers toward cheaper, unlicensed alternatives and weakening channelization rates. The long-term impact of the levy depends on reinvestment and, specifically, if funds support education, harm prevention, and enforcement, channelization could remain stable despite the higher tax.."

Entain has similarly raised an alarm, calling the sudden jump in the tax rate "appalling" and issuing a warning that as much as£150m could be lost in underlying profit by 2027 alone. At the same time, Reeves believes that her budget would raise an additional £1.1bn a year by 2029/2030.

Reeves motivated her decision by a refusal to cave into industry pressure that, should the government pass a higher remote gambling duty, the industry would fall into disarray. The chancellor further added that targeting the online gambling industry was a logical step, as it was historically associated with the highest levels of harm.

Jobs will most likely be affected in the latest move

However, the bingo duty of 10% will be abolished. The Betting and Gaming Council and its boss, Grainne Hurst, have already offered criticism of the measure, arguing that it would affect tens of thousands of jobs. Land-based operations are indeed going to be affected the worst, as confirmed by gambling majors.

Hurst has cautioned that by raising the remote gambling duty on online gambling, the government is empowering the offshore gambling market, which accounts for 71% of the total spending among European Union Member States, according to a recent study.

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