UK government confirms industry tax hikes as “victory for common sense”

Summary

The UK government has formally backed tax increases on online gambling announced in Chancellor Rachel Reeves’ Autumn Budget. Remote gaming duty (covering online casinos) will rise from 21% to 40% from 1 April this year, while the remote sports betting rate will increase from 15% to 25% from 1 April 2027. Bingo duty will be abolished in April, and betting on horse racing and in-person gambling will be left unchanged.

The Treasury Committee — and its chair Dame Meg Hillier — welcomed the move, calling it a “victory for common sense” and saying higher rates better reflect the harm linked to highly addictive online products. The government expects the changes to raise more than £1bn, despite evidence from other jurisdictions (for example the Netherlands) that higher online gambling taxes can reduce total receipts. The decision rejects industry testimony claiming online betting causes no social harm, a stance that drew criticism after comments from Betting and Gaming Council leadership.

Key Points

Remote gaming duty (online casinos) increases from 21% to 40% from 1 April 2026.
Remote sports betting tax rises from 15% to 25% effective 1 April 2027.
Bingo duty will be abolished in April 2026; horse racing and in-person betting are unchanged.
The government projects the measures will generate over £1bn in additional revenue.
The Treasury Committee and Dame Meg Hillier framed the rises as a public‑health response to harms from highly addictive online gambling.
Industry objections — including claims that online betting causes ‘no social ills’ — were explicitly rejected by the committee.
Evidence from other countries suggests higher online gambling taxes can sometimes reduce overall tax receipts, a risk the government appears willing to accept.

Context and relevance

This is a material policy shift for the UK iGaming sector and will affect operator margins, pricing, compliance and market strategy. The move sits within a broader trend of tougher regulatory approaches that prioritise public‑health arguments and social-harm mitigation over industry revenue concerns. Operators, investors and advisers should reassess forecasts, customer acquisition economics and potential shifts towards alternative markets or product mixes (eg. in-person betting, horse racing) as a consequence.

Author style

Punchy: This isn’t a minor tax tweak — it’s a major cost shock for online casino operators and a clear signal that the UK is prioritising harm reduction. If you operate in or invest in the sector, this needs to be modelled into your near-term plans now.

Why should I read this?

Quick and dirty: it’s going to hit online casino margins hard and change the economics of running remote betting in the UK. If you work in iGaming, finance, regulation or run a betting brand — know the dates, know the numbers, and start planning. We’ve done the skimmable version so you don’t have to dig through the Budget notes.