UK Budget Leak Forces Early Reveal of Major Gambling Tax Rises

The UK government’s 2025 budget was thrust into the spotlight earlier than intended on Wednesday morning after a leak exposed Chancellor Rachel Reeves’s plans—most notably a sweeping series of gambling tax increases designed to raise more than £1 billion from the betting sector.

The premature publication came after the Office for Budget Responsibility (OBR) mistakenly posted its Economic and fiscal outlook online ahead of schedule. In its statement acknowledging the error, the OBR said, “A link to our Economic and fiscal outlook document went live on our website too early this morning. It has been removed. We apologise for this technical error and have initiated an investigation into how this happened.”

Among the most significant disclosures was confirmation of a major jump in remote gaming duty, along with several other tax shifts affecting the betting industry. According to the leaked document, “Several changes to gambling duties have been announced in the budget, which overall are estimated to raise £1.1 billion by 2029-30.

“From April 2026 there will be an increase in remote gaming duty from 21 to 40 per cent and abolition of bingo duty from its current 10 per cent rate.”

Online sports betting duties will also be raised, moving from the current 15% to 25% in 2027. Brick-and-mortar betting and horseracing, however, will be spared any rise. The leaked files added, “From April 2027, a new rate of general betting duty for remote betting will be introduced at 25 per cent, excluding self-service betting terminals, spread betting, pool bets, and horseracing.

“The Government has also announced a freeze in casino gaming duty bands in 2026-27 with the usual RPI uprating thereafter.”

Reeves, who has repeatedly argued that bookmakers should contribute more, has maintained that gambling companies “should pay their fair share of taxes, and we will make sure that happens.”

One of the few sectors that escaped an increase was horseracing, which held an unprecedented nationwide strike in September under the British Horseracing Authority (BHA) to protest any potential tax rise. The levy on horseracing will remain at 15%, while online casino operators face the steepest climb with the duty rising to 40% from 21%. Industry reaction has been fierce, with the Betting and Gaming Council (BGC) warning that the government’s approach will cause “untold damage.”

Several operators have already begun adjusting to the looming financial strain. PaddyPower, William Hill, and Ladbrokes have all disclosed plans to close retail outlets, while SkyBet—part of Flutter—has shifted its headquarters to Malta. The company explained, “This decision was made for a number of strategic and commercial reasons and will have some tax implications.” Yet one insider described the move bluntly: “Tax was the elephant in the room. It is absolutely understood, across everyone affected, indirectly or directly, or even aware of the announcement, that this is about tax. No one with a straight face would say it’s ‘for strategic reasons’ or whatever other nonsense people come up with.”

Other firms are preparing to pass additional costs directly to punters, and some may overhaul their advertising output after it emerged that UK betting companies collectively spent an “astronomic sum” of £2 billion on marketing over the past year.

Although the measures themselves were long anticipated, the accidental leak has intensified criticism of Reeves and the government, giving opponents fresh ammunition to challenge the sweeping tax hikes. In a twist befitting the industry, bookmakers had been offering odds on which sectors would face tax increases—bets that remained open even after the leak, though as of now, all bets are off.

By fLEXI tEAM