UK Confirms Higher Taxes on Online Gambling in Budget Overhaul

Summary

The UK government has included substantial tax increases for online gambling in the Chancellor’s latest Budget, a move backed by MPs and the Treasury Committee. The changes are expected to raise more than GBP 1 billion for public funds and are being framed as a response to the rapid growth and social harms associated with digital betting products.

The main measures: from 1 April 2026 the tax on online gaming (casino-style products) rises from 21% to 40; from April 2027 remote betting (online sports betting) tax increases from 15% to 25. Land-based betting, horse racing and bingo are largely protected — horse racing rates stay the same and bingo halls will be exempt from bingo duty from April 2026. HM Revenue & Customs and the Treasury Committee cited the proliferation of mobile and highly engaging online products and linked harm as justification for the heavier levy.

Key Points

The Budget raises online gaming tax from 21% to 40% effective 1 April 2026.
Remote (online) betting tax will increase from 15% to 25% in April 2027.
Horse racing and land-based betting tax rates remain unchanged; bingo halls will be relieved of bingo duty from April 2026.
The measures are projected to bring in over GBP 1 billion for the public purse.
HMRC and the Treasury Committee argue the growth of internet gambling and evidence of harm from addictive digital products justify the differential treatment.
MPs, led by Treasury Committee chair Meg Hillier, publicly backed the decision as balancing harm concerns with support for traditional betting venues.
The change will materially affect online operators’ margins and commercial strategies and could prompt wider industry adjustments.

Context and Relevance

This Budget decision is part of a wider trend of policymakers targeting digital products that are seen to pose greater social harm. By sharply lifting rates for online gambling while protecting land-based formats, the government aims to recalibrate tax treatment to reflect perceived risk. The move matters to operators, suppliers, regulators, compliance teams and investors because it alters the economics of online offerings and may influence product design, pricing and market structure going forward.

Why should I read this?

Short and blunt: if you work in or around gambling — operator, supplier, regulator, lawyer or investor — this is not background noise. These tax rises will hit online margins hard and could change what products get prioritised or pulled. If you rely on the UK market or follow gambling regulation, save yourself time — read this now so you can adjust plans and forecasts rather than react later.

Author style

Punchy: the article flags a major policy shift with clear commercial consequences. Read the detail if you need to update strategy, compliance or financial models — this is one of those structural changes that matters.