Evoke response to UK gambling taxes: job cuts planned, mitigation process underway

• UK Budget 2025 raises Remote Gaming Duty from 21% to 40% effective April 2026.
• Evoke projects its annual UK tax bill will rise by up to £135 million by 2027.
• The operator plans major cost reductions, including potential job losses and reduced investment.

Evoke has warned that the sharp increases in UK online gambling taxes announced in the November 2025 Budget will significantly raise its tax burden, likely resulting in job cuts and pushing players toward unregulated operators.

The London-listed company expects its annual duty payments to increase by up to £135 million once the new rates are fully implemented in 2027.

UK gambling tax changes

The UK government has raised the Remote Gaming Duty (RGD) on online casino and games from 21% to 40%, effective from April 2026.

A new 25% duty on online sports betting (excluding horse racing) will replace the current 15% General Betting Duty starting April 2027. Bingo duty is abolished from April 2026, while taxes on in-person gambling and horse racing remain unchanged.

These measures aim to address concerns related to online gambling harm and generate additional government revenue. The overall package is expected to raise over £1 billion annually in the coming years.

Online gambling accounted for approximately £7.8 billion of the £16.8 billion gross gambling yield reported in Great Britain for the year to March 2025.

Expected impact on Evoke

Evoke anticipates the increased tax rates will add roughly £125 million to £135 million in annual duty costs by April 2027. The company estimates an £80 million impact on duty payments in its 2026 financial year due to the earlier RGD rise. In 2024, Evoke paid £329 million in UK taxes, representing over 60% of its UK profits.

To offset these increased costs, Evoke plans to implement cost-saving measures including closures of retail outlets, reduced marketing expenditure, supplier savings, and operating efficiencies.

The company is withdrawing its medium-term financial targets to reassess its UK investment strategy. It also suggests smaller rivals may exit the market or consolidate due to the heavier tax load.

Thousands of jobs on the line

Evoke’s leadership cautions that these tax increases will likely lead to thousands of job losses across the UK gambling sector. The group warns the higher cost of regulated products will drive some players to unregulated black-market sites lacking consumer protections and tax contributions.

The wider sports and betting supply chains may suffer as lower investments reduce funding to sports sponsorships and media partnerships. Evoke described the government’s tax decisions as “ill-thought-through” and “counterproductive,” signalling an immediate need to cut investment and jobs.

Per Widerström, CEO of evoke, commented:

“The decision today by the UK government to substantially raise taxes is highly damaging for the economy and consumers. As an industry, we have consistently warned of the significant impact on jobs, investment in the UK, and player protection that these changes would have, yet sadly the Government has chosen not to listen.

“We will begin immediately on executing our mitigation plans, which involve a significant reduction in investment into the UK, and, very regrettably, the likely need for thousands of jobs to be cut up and down the country.

“As a result of the actions now required, these tax changes will reduce the overall level of tax the regulated industry pays in the UK, and more importantly it will have a significant negative impact on player protection as these changes will incentivise activity moving to the illegal and dangerous black-market.”

Sector outlook

With one of the highest online casino tax rates in Europe, the UK’s new gambling tax regime is likely to impact how operators price and design products. Large companies like Evoke may manage through scale, but smaller ones may struggle.

Regulated market sustainability and protection of consumers depend on balancing adequate taxation with competition against unregulated operators. The next few months will be pivotal for operators, regulators, and investors to monitor market shifts prompted by these tax changes.

Source: Evoke letter