The UK government’s proposed reforms to gambling taxation represent one of the most significant shifts the online gaming industry has faced in years. Announced following a wide-ranging consultation and set to be introduced between 2026 and 2027, these changes will reshape how remote gambling is taxed, influence operator behaviour, and potentially alter player experiences across online betting and gaming platforms. The impact on reputable online platforms like 666 Casino remains to be seen, but we explore the possible implications below.
When Will The Changes Take Place?
At the centre of the reforms is a substantial increase in Remote Gaming Duty (RGD). From 1 April 2026, the tax rate on profits from remote gaming, including online slots, casino games, and digital bingo, will rise sharply from 21% to 40%. This increase primarily affects remote gaming providers who offer gambling through the internet, mobile apps, or other electronic communication technologies.
The government has deliberately targeted this sector, arguing that online casino-style products have lower operating costs and are generally associated with higher levels of gambling-related harm than other forms of betting.
Introduction Of General Betting Duty
Alongside this, the government will introduce a new General Betting Duty (GBD) rate for remote betting from 1 April 2027. Online sports betting and similar activities will be taxed at 25%, higher than the existing 15% rate applied to bets placed in physical betting shops. However, important exceptions remain.
Remote bets on UK horse racing will continue to be taxed at 15%, reflecting the industry’s statutory contribution to the Horserace Betting Levy, which effectively brings the overall tax burden to around 25%. Bets placed via self-service betting terminals in licensed premises will also remain at the lower rate.
Abolishment Of Land-Based Bingo Duty
In contrast to these increases, the government plans to abolish Bingo Duty entirely from 1 April 2026. This move benefits land-based bingo operators and aligns with the government’s aim to support lower-risk gambling activities while simplifying the tax system by removing one of several overlapping gambling duties.
Influence On Industry Behaviour
The policy objective behind these reforms is twofold. First, the changes are expected to raise more than £1 billion per year for public finances, contributing to a fairer and more sustainable tax system. Second, the government aims to influence industry behaviour by discouraging operators from promoting products viewed as more harmful, particularly online casino-style games, while maintaining a more moderate approach to remote betting.
Significant Impact On Gambling Businesses
For gambling businesses, the impact will be significant. Around 160 remote betting operators and nearly 150 remote gaming providers will face higher duty bills. While one-off administrative costs, such as updating systems and familiarising staff with new rules, are expected to be minimal, the long-term financial implications could affect profitability, marketing strategies, and product offerings.
Some operators may pass increased costs on to consumers through less favourable odds or reduced returns, while others may seek to innovate or diversify to mitigate the impact.
Reshaping Of Online Gambling Landscape
For players, the changes could subtly reshape the online gambling landscape. Higher duties may lead some individuals to gamble less or switch between gambling products, although the government acknowledges the risk that some could turn to unregulated or illegal markets.
Final Thoughts
Overall, these reforms mark a decisive shift in UK gambling policy. By increasing taxes on online gaming, introducing a higher rate for remote betting, and abolishing Bingo Duty, the government is signalling a clearer distinction between different forms of gambling, one that is likely to transform the online gaming industry for years to come.
