Key Moments:
- The UK government announced that remote gaming duty will rise from 21% to 40% in April 2026. Additionally, remote general betting duty will increase from 15% to 25% in April 2027.
- Major operators such as Entain, Flutter, Rank Group, and Playtech have released impact estimates. They have also outlined cost-cutting measures and workforce reduction plans.
- Industry leaders and analysts express concern that higher taxes could benefit the unregulated gambling market and lead to a potential shift of £2.5 billion in gross gaming revenue away from licensed operators.
Major Operators Signal Spending Cuts and Job Losses
Following the UK government’s autumn budget announcement, remote gaming duty will rise sharply from 21% to 40% in April 2026. Furthermore, remote general betting duty will increase from 15% to 25% in April 2027. The changes exclude spread betting, pool bets, horse race wagers, and self-service terminals. As a result, several major gambling companies have announced cost-cutting plans, including reductions to marketing and jobs.
Entain projected an EBITDA impact of about £100 million in 2026 and £150 million in 2027. To reduce the burden, the company plans to cut marketing and promotions to offset roughly 25% of the added costs. In addition, CEO Stella David said the company was “deeply disappointed,” warning that the tax hike could harm the industry and increase risks for customers.
Evoke’s CEO Per Widerström reported the business plans to decrease supplier costs, marketing expenses, and physical retail presence, noting: “This will 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,” he said.
Flutter UK and Ireland CEO Kevin Harrington forecasted the company would directly mitigate around 20% of the gross impact in the first six months after implementation, growing to 40% thereafter. Flutter anticipates EBITDA reductions of approximately $235 million in FY2026 and $339 million in 2027.
Rank Group estimated that the new duties would add £46 million in digital business costs and flagged a 4.1% rise in the National Minimum Wage to £12.71, creating a further expense of £5.5 million. Playtech disclosed that it expects a “high-teens millions of euros” group-adjusted EBITDA impact in 2026 before mitigation, citing its international operations as supportive of overall revenue.
70% of Britons would support raising taxes on online gambling, following Gordon Brown calling for an increase in the levies to fund efforts to tackle child poverty
Support: 70%
Oppose: 16% pic.twitter.com/0a3nvDmylA— YouGov (@YouGov) August 8, 2025
| Company | EBITDA/Duty Impact Estimate | Cost Mitigation Strategy |
|---|---|---|
| Entain | £100 million in 2026, £150 million in 2027 | Cut marketing/promotions (25% mitigation) |
| Flutter | $235 million in 2026, $339 million in 2027 | Direct mitigation 20%-40% of gross impact |
| Rank Group | £46 million additional duty; £5.5 million wage cost | Not specified |
| Playtech | High-teens millions of euros in 2026 | International revenues as buffer |
Industry Voices Address Revenue Risks and Market Contentions
Industry organizations and company executives are warning of significant negative effects on both operating margins and the regulated gambling industry’s financial health. Betting and Gaming Council CEO Grainne Hurst called the new tax regime “excessive,” and stated: “They’re a devastating hammer blow to tens of thousands of people working in the industry across the UK, and millions of customers who enjoy a bet.”
Widerström stated: “Proposals are ill-thought-through, counterproductive and highly damaging,” and emphasized that industry feedback was provided before the final policy decision was made.
Concerns Over Unregulated Market Expansion Intensify
Operators maintain that higher taxes may push more wagering activity into the illegal, unlicensed segment of the market. Hurst commented: “The budget is a massive win for the incredibly harmful, unsafe, unregulated gambling black market.” Harrington stated: “These black market operators don’t pay tax and don’t invest in safer gambling.”
Analysts from Regulus estimated that as licensed operators pull back on marketing and consumer offers, up to £2.5 billion in gross gaming revenue could shift to offshore, unregulated platforms.
Partial Offsets and Calls for Enforcement
There are some positive responses to other policy decisions: Rank Group welcomed the abolition of bingo duty for land-based businesses, while Super Group suggested that the higher tax impact could be sustainable if authorities rigorously enforce rules against non-paying offshore competitors. Super Group CEO Neal Menashe said: “We rely on the government to ensure the very substantial increase should be paired with robust and strict enforcement.”
- Author
Daniel Williams
