A major tax overhaul will hit online casinos and sportsbooks, while traditional gambling remains untouched.
Online Gambling Hit with Sharp Tax Increase
The UK government has locked in steep tax rises for online gambling operators, confirming moves first floated in the Autumn Budget. Starting in 2026, digital casinos and sportsbooks will face significantly higher duties, with ministers pointing to addiction risks and the fast growth of online play as driving factors.
While online gaming takes the brunt, high-street bookies, bingo halls, and horse racing are off the hook—some even catching a tax break.
Online Casino Tax Jumps to 40%
From 1 April 2026, remote gaming duty—applied to online casino games like slots and roulette—will soar from 21% to 40%. This near-double increase represents one of the biggest tax moves against the sector in recent memory.
The Treasury argues that the tax should better reflect the harm caused by online gambling, which has surged in popularity and profitability. Ministers were particularly critical of the industry’s claim that online betting causes no social harm, calling those assertions tone-deaf and unconvincing.
Remote Sports Betting Up to 25% in 2027
Online sports betting won’t escape either. From April 2027, its tax rate will jump from 15% to 25%. Unlike the casino tax, this rise is delayed to give operators more time to adapt their pricing and business strategies.
Bingo Gets a Free Pass—Literally
In a rare win for the gambling sector, bingo duty will be scrapped entirely from April 2026. Land-based bookmakers and racing fans can also breathe easy, as horse racing bets and retail betting shops will see no tax changes.
Officials say this split approach is deliberate. It’s aimed at protecting traditional gambling, seen as lower-risk and culturally rooted, while reining in the online sector that MPs say has led to rising addiction and financial harm.
£1 Billion Windfall for Treasury
The new tax regime is forecast to rake in more than £1 billion a year once fully implemented. Despite concerns that higher taxes might shrink revenues—as seen in the Netherlands—UK ministers are betting on a different outcome, believing online gambling is robust enough to handle the extra cost.
Why the Focus on Online Gambling?
The Treasury Committee found that remote gaming’s share of Gross Gambling Yield jumped from 12% to 44% in just a decade, thanks to mobile-friendly games and around-the-clock access. MPs argue these digital products offer limited public benefit and pose higher addiction risks.
Dame Meg Hillier, who chairs the committee, didn’t mince words: “It’s staggering that the industry can pretend its activities don’t cause harm. These platforms are making huge profits by steering people into the most addictive corners of gambling.”
What It Means for Players
Players likely won’t see new taxes directly, but the fallout may still hit home. Online casinos facing a 40% tax rate could cut back on bonuses, trim loyalty rewards, or scale down riskier products. Smaller sites may struggle to survive, leading to fewer choices and more consolidation in the market.
At the same time, compliance costs are expected to rise. Operators will likely tighten up responsible gambling tools and reassess their marketing and retention strategies to stay viable under the new regime.
Final Word
The message is clear: the UK government sees online gambling as both a booming business and a growing risk. By hiking taxes on digital platforms while sparing traditional venues, ministers are redrawing the financial map of the gambling industry—and players should expect changes in how their favourite sites operate.
Key Dates
- 1 April 2026: Online casino tax rises to 40%
- April 2027: Online betting tax rises to 25%
- April 2026: Bingo duty abolished
The era of light-touch taxation for online gambling in the UK is officially over.
