Key Moments:
- Parliament debated almost doubling the Remote Gaming Duty on online casino-style products, from 21% to 40%, effective April 1, 2026.
- Concerns arose that higher duties could push consumers toward unlicensed offshore gambling platforms.
- The government committed an additional £26 million over three years to strengthen enforcement against illegal operators.
Legislative Proposals Target Online Gambling Sector
During a Commons debate on the Finance (No. 2) Bill, UK ministers introduced plans for major changes to gambling taxation. Specifically, the Remote Gaming Duty (RGD) on online casino products—like slots and roulette—would rise from 21% to 40% starting April 1, 2026. In addition, a 25% remote rate would apply for General Betting Duty on online bets, while the 15% rate for in-person betting shops stays the same. Remote bets on UK horse racing retain their 15% duty. Meanwhile, bingo duty is set to be abolished in April 2026.
Growth in Remote Gambling Justifies Higher Duties
Ministers argue that rapid growth in remote products and their higher risk of harm justify the tax increase. Treasury minister Lucy Rigby cited Gambling Commission data showing that gross gambling yield for remote gaming rose from £2.5 billion in 2015–16 to £5.2 billion in 2024–25. She added that the duty hike aims to discourage operators from promoting higher-risk offerings.
Concerns About Black Market Migration
Opposition voices warned that excessive taxation might backfire. Higher duties could push consumers to unlicensed offshore sites, reducing tax revenue and weakening player protections.
Shadow Treasury minister James Wild said: “When taxes rise too far, behaviour can change, and activity may shift to unregulated markets where protections are weaker, fraud risks are higher, and tax revenue is lost.” He cited the Office for Budget Responsibility, which warned of about £500 million in leakage.
Conservative MP Caroline Dinenage noted that the 40% duty is high compared with other countries and could encourage black market use. Labour’s Gareth Snell pressed for clarity on how the government plans to prevent unlicensed operators from benefiting.
Government Counters Concerns with Enforcement Strategy
Ministers responded with two main points. Lucy Rigby described the illegal online betting market as “relatively small,” estimating black market stakes at 2–9% of the legal online market. Additionally, the government pledged £26 million over three years to strengthen the Gambling Commission’s enforcement efforts.
Funding for Gambling Harm Prevention
The debate also considered funding for organizations helping those harmed by gambling. Caroline Dinenage warned that voluntary groups face a “funding cliff edge” due to delays and uncertainty in switching to a statutory levy system.
Ministers emphasized that the duty increases are part of broader reforms. They aim to shift financial responsibility to higher-harm remote products while protecting lower-risk segments, such as bingo halls.
| Product/Market | Current Duty Rate | Proposed Duty Rate & Date |
|---|---|---|
| Online Casino (Remote Gaming Duty) | 21% | 40% (from April 1, 2026) |
| Online Sports Betting | Not specified | 25% (from April 1, 2027) |
| In-person Betting Shops | 15% | 15% (no change) |
| Remote UK Horse Racing | 15% | 15% (no change) |
| Bingo Duty | Current rate not specified | Abolished (from April 2026) |
Next Steps for the Finance (No. 2) Bill
The Finance (No. 2) Bill is still under Parliamentary review. The main focus remains on raising duties for online gaming and betting. While the aim is to reduce gambling-related harm and boost public finances, debate continues. Critics warn that higher taxes may push some players to unregulated offshore operators, which could undermine the intended protections.
- Author
Daniel Williams
