UK Unveils Major Overhaul of Online Gambling Taxes, Triggering Industry Backlash

Britain is preparing for one of the most sweeping changes to online gambling taxation in years, with Chancellor of the Exchequer Rachel Reeves unveiling plans to sharply increase the tax burden on the sector’s most lucrative operations.

The details surfaced ahead of schedule after the Office for Budget Responsibility (OBR) mistakenly published its analysis before the official announcement in the House of Commons.

Under the new framework, online casinos will face a dramatic rise in the remote gaming duty, which will jump from 21% to 40% starting in April 2026. In addition, beginning in 2027, a new 25% general tax will apply to remote betting—excluding horse racing. The OBR estimates that the combined measures will bring in £1.1 billion ($1.4 billion) by the 2029–2030 fiscal year.

Not all forms of gambling are being treated equally. Bingo, regarded by the government as a comparatively low-risk activity, will see its 10% levy scrapped entirely next year.

Markets responded swiftly and sharply. Shares of Evoke Plc, the parent company of 888casino and William Hill, tumbled as much as 20%, reaching their lowest value in 14 years. Entain Plc, owner of Ladbrokes, also saw a decline of up to 6.3%.

Public opinion appears firmly behind the decision. Citing polling data, Bloomberg reported that “82% of Britons believe that raising taxes on gambling companies is ‘the right choice.’”

Industry leaders, however, insist the abrupt hike will have serious consequences for jobs and could push customers toward offshore operators that are not bound by UK-mandated safety measures. They argue that the heavier tax load will inevitably be passed on to players.

This overhaul follows years of increasingly strict oversight of the gambling sector. Authorities have previously introduced tighter betting limits, greater advertising constraints, and more extensive affordability checks. Since April, gambling companies have also been subject to a levy of up to 1.1% on gross revenues to fund addiction prevention and treatment initiatives.

The measures form part of a broader tax strategy by the Labour government, aimed at addressing fiscal pressures stemming from sluggish productivity, elevated borrowing costs, and contentious social policy demands. Supporters of the reforms contend that the betting industry enjoys particularly high profit margins and should therefore be expected to contribute more to offset the societal costs associated with gambling.

Some operators have already begun repositioning themselves in response to the looming financial impact. Flutter Entertainment Plc, for instance, is relocating Sky Bet’s headquarters to Malta by 2025, citing “strategic and commercial reasons” for the move.

By fLEXI tEAM