A new consultation has been launched that could bring a major shift to the way UK-facing remote gambling is taxed. The proposal is to replace the three separate duties currently applicable to different forms of remote gambling (being General Betting Duty (GBD), Pool Betting Duty (PBD), and Remote Gaming Duty (RGD)) with a single, streamlined Remote Betting and Gaming Duty (RBGD).
The consultation, open until 21 July 2025, invites views from gambling operators, industry bodies and other stakeholders on how the new tax should be structured and administered. If adopted, the new regime could take effect from October 2027, following legislation and administrative system updates.
Why change is on the table?
According to the consultation, the current tax framework maintains arguably outdated distinctions between betting and gaming, each with its own rules and duty rates, which can create complexity, administrative duplication, and inconsistencies in treatment.
The consultation reflects HMRC's recent drive to modernise tax compliance, the impact of which is being felt across the entire tax landscape. Here, the Government also argues that the distinctions between betting and gaming are outdated and takes the view that they are similar products delivered digitally and should not face inconsistent tax treatment simply due to what they describe as historical categorisations.
What is being proposed?
The headline proposal is to merge GBD, PBD and RGD into a single duty - the Remote Betting and Gaming Duty - covering all forms of remote gambling under one unified regime.
Key features of the proposal include:
- a single registration and return process for remote gambling operators;
- a unified definition of "remote gambling" consistent with current gambling legislation, including bets and games placed via internet, phone, or other electronic means;
- the inclusion of ancillary remote gambling activities (e.g., self-service betting terminals or bets placed by phone to a shop), i.e. ancillary to premises-based gambling;
- the potential inclusion of spread betting, though the Government is still considering whether it should remain outside RBGD due to its distinct characteristics;
- harmonised treatment of free bets and freeplays, and tighter rules in respect of wagering requirements; and
- non-cash prizes may become deductible under the new regime, subject to specific conditions.
Crucially, however, no rate for RBGD has been proposed. If the proposal proceeds, this will be set by the Budget, so it is unclear whether operators could expect their overall burden to rise, fall or stay the same under the proposal.
The understandable concern within the industry is that the proposals carry the risk of significantly increasing the tax burden on the regulated industry. This would be particularly unwelcome following the legislative reforms coming out of the Gambling Act White Paper, and increasing evidence of a burgeoning unlicensed black market, unconstrained by regulatory and fiscal compliance.
What is not changing?
Importantly, the proposals do not appear to affect:
- premises-based gambling, which will remain under the existing GBD and PBD structures; or
- Lottery Duty, which continues to be treated separately; or
- sanctions, where it appears the intention is to continue to rely on the existing enforcement powers including penalties, license revocation, and criminal prosecution for serious non-compliance.
What happens next?
The Government is inviting responses to a series of consultation questions on everything from scope and definitions, to administration and tax treatment of incentives. Industry feedback will help shape the design of the RBGD and ensure that it is fair, simple, and future-proof.
If you are a remote gambling operator, or an operator of gambling premises and use an ancillary remote licence, this is a consultation worth your attention!
Submit your views by 21 July 2025 via the HMRC consultation portal or by email to remotegambling.consultation@hmrc.gov.uk.
Read the consultation
Our Betting and Gaming team has significant experience in helping clients to respond to consultations to achieve the maximum impact. We are here to help if you have any questions on the way this proposal might affect you, or you want advice on navigating the existing rules in the current landscape.