UK Budget to raise £1 billion in overhaul gambling tax revenues
Remote gaming duty doubles; Bingo duty scrapped; Casino duty frozen
Today’s UK Budget unveiled one of the most significant overhauls of gambling taxation in recent years. The Government is pitching the package as a way to raise an extra £1.1 billion by 2029–30, while also reshaping how different forms of gambling are taxed. However, much of that headline revenue is expected to be eroded once operators and customers start to change their behaviour.
Key tax changes across the gambling sector
1. Remote gaming duty nearly doubles from April 2026
From April 2026, remote gaming duty (RGD) on online casino-style games will rise sharply from 21% to 40%. This is the centrepiece of the package and is clearly aimed at the fast-growing online gambling market.
In practice, this will materially increase the tax burden on remote gaming operators, both UK-based and offshore firms targeting the UK market. Most are expected either to increase prices (worse odds / lower payouts) or to scale back more marginal products.
2. Bingo duty scrapped from April 2026
At the other end of the spectrum, bingo duty – currently charged at 10% – will be abolished from April 2026.
This is a rare tax cut in the package and will be welcomed by bingo operators, many of whom have argued that they face tighter margins and a more socially-oriented customer base compared with other gambling products. The abolition should, in principle, give the sector some breathing space to invest in venues and digital offerings.
3. New 25% rate of general betting duty for remote betting from April 2027
From April 2027, a new, higher rate of General Betting Duty (GBD) will apply to remote betting at 25%.
Importantly, the new rate will not apply to:
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Self-service betting terminals
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Spread betting
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Pool betting
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Horserace betting
That carve-out creates a deliberate differential across products. Traditional horseracing and certain specialist betting formats will retain their current tax treatment, while mainstream remote betting faces a higher effective tax rate. Over time, this is likely to influence where both operators and customers focus their activity.
4. Casino gaming duty bands frozen for 2026–27
For casinos, the Government has chosen a simpler lever: the existing casino gaming duty bands will be frozen in 2026–27, with the usual indexation by RPI resuming thereafter.
In other words, there is no immediate rate hike, but by holding bands flat for a year, more casino revenues will drift into higher bands than would otherwise have been the case. It is a quieter, but still revenue-positive, change.
For the Treasury, the package is a calculated gamble: trading higher statutory rates for a complex set of behavioural reactions that could significantly erode the final take. Over the next few years, out-turn receipts and market data will show whether that bet has paid off.
