UK Treasury's Unified Remote Gambling Tax Plan Sparks Industry Alarm

The UK Treasury’s proposed overhaul of remote gambling taxation has triggered significant unease across the betting and gaming sector, as it pushes for a unified Remote Betting & Gaming Duty.

This initiative is part of the government’s wider objective to increase fiscal contributions from the digital gambling sphere—a move that comes in the wake of the financial and regulatory pressures already introduced by the Gambling White Paper.

The proposal, which seeks to impose higher taxes uniformly across all remote gambling activities, is largely viewed as a revenue-maximising measure targeting the booming mobile gaming market. Industry stakeholders are bracing for the fallout.

The Betting & Gaming Council (BGC) has been particularly vocal in its objections, sounding the alarm over the disproportionate impact on horse racing—an industry known for its slim profit margins. The BGC stressed that “the impact on horse racing could be especially damaging,” pointing to the fragile economics underpinning the sport.

The Treasury’s tactic is seen as a classic fiscal response to a surging sector, attempting to capitalise on the growth of mobile betting. However, the implications extend far beyond just operators—affiliates are poised to feel the sting as well.

The affiliate sector has a historical precedent to reference. After the introduction of the Point of Consumption Tax in 2014, operators cut marketing budgets dramatically. This shift resulted in affiliate commission rates dropping by between 15% and 25%, a blow many smaller affiliates struggled to absorb. Should this pattern repeat itself, many affiliates could find themselves facing similar financial strain.

Adding to these concerns is the likelihood of increased scrutiny from the UK Gambling Commission (UKGC). With regulatory tightening on the horizon, compliance demands are expected to intensify, especially in the realm of affiliate marketing. The message to affiliates is clear: “maintain rigorous compliance documentation” to be audit-ready.

The proposed tax changes may also accelerate the wave of consolidation already reshaping the sector. As operators grapple with rising costs, mergers and acquisitions could become more attractive, much like the Flutter and Stars Group merger. Such developments tend to reduce the number of available affiliate partnerships and concentrate negotiating power in the hands of fewer, larger companies.

In light of these shifts, industry experts advise affiliates to adapt proactively. Diversification into markets outside the UK, the adoption of hybrid commission models, and an emphasis on delivering enhanced value-added services are all recommended strategies. These measures could help affiliates maintain relevance and profitability even as margins tighten for operators.

Despite the uncertainty, there remains a silver lining. As the industry realigns, affiliates that remain agile, innovate, and continue to offer measurable value will not only survive the regulatory turbulence—they could emerge stronger. As the article suggests, “the prepared affiliates will not only endure but thrive amidst regulatory shifts.” 

By fLEXI tEAM