UK Gambling Tax Increase 2026

What the New Rules Mean for Casinos, Players and Affiliates

In a landmark decision during the 2025 UK Budget, the UK government announced a comprehensive overhaul of gambling duties — dramatically raising taxes on online casino and remote gaming, abolishing bingo duty, and introducing new rates for remote betting. These changes represent the biggest shift in UKGC taxation in years, and they have major implications for operators, affiliates, and players alike.

📅 Key Changes — What’s New, and When

The changes will come into effect as follows:

• Remote Gaming Duty (RGD) — the tax paid by operators on profits from online casino games (slots, table games, etc.) — will rise from 21% to 40% starting 1 April 2026.

• Remote Betting (sports, non-horse racing) — a new rate under the broader General Betting Duty (GBD) will be introduced on 1 April 2027, at 25% for remote bets. Traditional in-person betting shops and horse-racing bets remain at 15%.

• Bingo Duty will be abolished from 1 April 2026.

These changes follow a 2025 consultation by the treasury on simplifying the UK’s remote gambling taxation — but ultimately, the government opted not to merge all duties into a single “Remote Betting & Gaming Duty,” deciding instead to preserve differentiated rates given the varying risk and cost profiles of different gambling formats.

Why the Government Did It — Policy Rationale & Expected Impact

According to the official government statement, the rationale behind the overhaul stems from concerns over the rapid growth of online gambling and its associated risks. Remote gaming — especially online casino games — is regarded as “associated with the highest levels of harm,” leading regulators to believe its taxation should more sharply reflect that risk.

By raising the Remote Gaming Duty to 40%, the government aims both to increase public revenues and to disincentivise overly aggressive online casino marketing and product push by operators.

At the same time, the lower remote betting duty rate (25%) compared to gaming reflects a policy decision to treat betting and gaming differently — acknowledging that betting (e.g. sports betting) tends to have different risk dynamics than casino-type gaming.

The abolishment of Bingo Duty also reflects a view that bingo and similar lower-risk social gambling activities should be taxed more leniently.

From a revenue perspective, the government expects these reforms to raise approximately £1.1 billion per year by 2029–30.

What It Means for Online Casinos & Operators

For operators targeting UK players — especially those focused on online casino games — the increase to 40% RGD is a game-changer. The nearly doubling of duty will significantly increase cost per net profit, which may have several cascading effects:

• Reduced margin per player / less profitable players: Operators might need to adjust business models, reduce bonuses, or tighten margin thresholds to remain profitable after the tax hike.

• Potential reduction of UK-facing offers or exit from the UK market: For some operators, the high levy may make it economically unviable to continue offering casino services to UK customers — especially smaller or mid-tier operators without scale.

• Push toward other jurisdictions or offshore markets: There may be increased incentive to target non-UK jurisdictions (or unregulated/offshore markets), which could lead to a shift in focus away from UK players.

• Impact on advertising and affiliate commissions: With operator margins squeezed, marketing spend — including affiliate commissions and incentives — may be scaled back. Affiliates promoting casinos to UK players may see less favourable commission structures.

Indeed, some industry stakeholders have already raised concerns. The Betting and Gaming Council (BGC) warned that tax rises of this scale could cut as much as £3.1 billion from the UK gambling economy and even lead to tens of thousands of job losses.

What This Means for Players & Affiliates Marketing to the UK

For Players

• Reduced promotions / less attractive bonuses: As operators face higher cost burdens, they may scale back affiliate offers, welcome bonuses, no-deposit promotions, free spins, or loyalty rewards for UK customers.

• Possible shrinkage of UK-licensed casino pool: Some casino brands may choose to stop accepting UK players — reducing variety and limiting options in the regulated space.

• Potential rise in grey- or black-market gambling: Increased cost and reduced offers in the regulated market could push some players toward unlicensed offshore casinos — where protections for players are weaker.

Conclusion

The 2025 UK Budget’s gambling-duty overhaul marks a turning point for the UK online gambling market. With Remote Gaming Duty rising to 40%, a new remote betting duty of 25% from 2027, and the abolition of bingo duty, the regulated UK market will — at the very least — undergo a painful restructuring.

For operators, tighter margins could mean fewer UK-facing offers or exit from the market. For affiliates and marketing platforms like CyberCasinoIndex, it means revisiting all existing reviews and promotions, shifting strategies, and increasing transparency for users. For players, it could translate to fewer bonuses, less generous offers — or migration toward unregulated offshore platforms (with all the risks that entails).

Given these sweeping changes, now is the time to proactively update your UK jurisdiction page, audit all UK-facing content, and re-evaluate your affiliate strategy. For anyone operating or marketing in the iGaming space, 2026 may mark the start of a new, more regulated — and more cautious — era.