Britain Hammers Online Gambling Industry With Tax Rates Up To 40 Percent

Do you feel the tax hikes on the UK gambling industry are fair? I look at which industries are affected and the possible side effects.

Chancellor Rachel Reeves has announced sweeping tax increases targeting Britain’s online gambling sector, with rates climbing as high as 40% for remote gaming. The predictions were close to our earlier reports suggesting 50% rates, though the final figures landed slightly lower in some sectors.

Nonetheless, the tax rises are a severe blow to the UK gambling industry, and I personally predict job losses and shutdowns.

Furthermore, with a freeze on income tax and national insurance thresholds, as well as tax hikes on savings, dividends and other forms of income, there will be no shortage of people with less disposable income to spend on gambling.

As a result, the gambling industry will suffer not only from higher taxes applied to their businesses but also from fewer customers, bets, or spins as people go into budget mode. Of those costs passed down to players, there is only one route: black-market online casinos. Something I have always said many people I know already partake in.

Tax Changes Hit Different Sectors With Varying Impact

The Budget delivered a two-tier assault on online operators. Remote Gaming Duty on casino games, slots, and similar products will increase from 21% to 40% starting in April 2026. General Betting Duty for online sports betting will rise from 15% to 25% from April 2027.

The government projects these measures will generate over £1.1 billion annually by 2031, though economists predict operators will pass 90% of costs to players through reduced odds and lower payouts. Yet, in reality this is just the Labour government taking a huge gamble.

Tax Rate Breakdown By Gambling Sector

Operators Sound Alarm Over Job Losses and Market Exit

Britain’s major operators responded with warnings of mass redundancies and operational cuts. Evoke, which operates William Hill and 888, faces annual costs rising by £125-135 million. CEO Per Widerström announced “thousands of jobs to be cut up and down the country” alongside reduced UK investment. The company withdrew its medium-term financial targets entirely.

Flutter Entertainment, parent of Paddy Power and SkyBet, projects impacts of $320 million in 2026 and $540 million in 2027. UK CEO Kevin Harrington warned: “These changes will hand a big win to illegal, unlicensed gambling operators who will become more competitive overnight.”

Entain, owner of Ladbrokes and Coral, estimates an annual £200 million hit. CEO Stella David called the increases ‘punitive’ but noted the company may capture market share as smaller operators abandon the UK market.

However, larger companies are also exiting the country, a trend already evident in SkyBet’s move to Malta. Once companies relocate offshore, they rarely return, even if a new government comes in and lowers taxes, which let’s be honest, that r

What This Means For UK Players

Players will bear the burden through diminished bonuses, tighter odds, and reduced payouts. Treasury documents confirm expectations that operators will pass through 90% of the increased costs to consumers. Welcome offers and free bets face cuts as companies slash promotional budgets by up to 40%.

The government allocated just £26 million over three years to combat black-market operators, a figure industry experts call woefully insufficient. As offshore gambling sites continue winning in regulated markets, unregulated platforms will become increasingly attractive alternatives for UK players seeking better value, despite lacking consumer protections.

The Betting and Gaming Council called the measures “a devastating hammer blow” to 109,000 industry jobs. Grainne Hurst, BGC CEO, stated: “These excessive online tax increases will undermine jobs, investment and growth across the UK.”

Casinoplusbonus Opinion

This outrageous tax grab will almost certainly hit the industry hard, leading to more job losses. The government claims to address gambling harm, yet these measures seem designed purely for revenue generation. By driving players toward unregulated offshore sites offering better odds and no taxes, Britain creates the opposite of safer gambling. Companies will exit, taking jobs and tax revenue permanently. The Netherlands tried similar policies and saw gambling tax receipts decline while black-market activity surged.

This is counterproductive policy-making at its worst, prioritizing short-term budget fixes over long-term industry health and genuine player protection.