Official: UK raises remote gaming duty to 40% in 2025 Autumn Budget
Table of contents
- Remote gaming duty increases from 21% to 40% starting April 2026.
- Bingo duty abolished and new general betting duty of 25% for remote betting from April 2027.
- Tax hikes expected to generate about £1.1 billion by 2029-30 to address government fiscal needs.
The UK government has confirmed a sharp rise in the remote gaming duty from 21% to 40%, effective from April 2026, as part of Chancellor Rachel Reeves’s 2025 Autumn Budget.
The duty increase coincides with the abolition of the 10% bingo duty and the introduction of a new 25% general betting duty rate for remote betting scheduled for April 2027. These changes aim to raise additional revenue amid ongoing fiscal pressures.
Remote gaming duty rise and policy details
The Office for Budget Responsibility (OBR) disclosed the detailed tax changes ahead of Reeves’s official budget speech. The increase in remote gaming duty on profits from online gambling targeted at UK players will nearly double from 21% to 40%.
Meanwhile, the existing bingo duty will be scrapped entirely. Beginning April 2027, a new general betting duty rate of 25% will apply to remote betting activities, excluding categories such as self-service betting terminals, spread betting, pool betting, and horse racing. This taxation reform is expected to bring in an extra £1.1 billion by the fiscal year 2029-30.
Industry impact and governmental rationale
The taxation rise represents a significant policy adjustment with direct implications for UK-based and remote gambling operators. These higher duties may affect profitability and market dynamics within the sector.
The government’s move reflects increased emphasis on generating fiscal revenue from gambling activities, partly in response to social concerns linked to gambling harms.
Reeves stated the need for gambling firms to “fulfil their fair share of taxes” without providing further direct quotes on the specific rates during the speech. Industry groups warn that amplified tax burdens might lead to job losses and worse betting conditions for consumers, highlighting potential risks for the regulated sector’s stability.
Regulatory context and compliance
Remote gaming duty applies to operators offering gambling services to UK customers, irrespective of where they are located. The duty must be registered and paid to HMRC, with non-compliance resulting in penalties. The government’s approach aims to ensure remote gambling providers contribute appropriately to UK public finances, reflecting evolving digital market realities and regulatory frameworks.
Abolishing the bingo duty simplifies the tax structure, while the new betting duty expands the tax base to capture more forms of remote betting revenue.
Outlook for operators and investors
This duty increase marks a pivotal change in the UK gambling taxation landscape beginning April 2026, with further changes planned in 2027. Operators will likely reassess business strategies, pricing, and market focus to adapt.
Investors should carefully monitor regulatory and fiscal developments affecting the sector’s profitability. The government’s decisions illustrate a broader approach to balancing revenue generation with regulation of gambling’s economic and social impacts.
This budget signals that the UK is intensifying its fiscal oversight of the gambling industry as part of a wider tax rise initiative, with ongoing implications for operators, regulators, and players in the sector.
About the author
Bianca Máthe
Bianca Mathe joined the iGaming industry in 2018 and has since built extensive experience across multiple verticals, working with international gaming organizations on editorial, marketing, and media strategy. She brings a strong understanding of the regulatory, commercial, and technological forces shaping the global iGaming sector.
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