Following a consultation earlier this year, the Government has confirmed that it will not be proceeding with its proposal for a single remote betting and gaming duty. Instead, it will increase duties on remote gambling, with different rates for betting and gaming. The changes announced by the Government are:
- From 1 April 2026, Remote Gaming Duty (RGD) will increase from 21% to 40%. RGD is payable on gross gambling profits from remote gaming products, including online casino games and bingo.
- From 1 April 2027, a new 'Remote Betting Rate' will be introduced for remote sports betting, as a subset of General Betting Duty (GBD). This will raise the tax currently payable on the gross profits from remote sports betting from 15% to 25%. Remote bets on horseracing will be exempt from this new rate, meaning that duty on remote horserace betting will remain at 15%. Spread bets and pool bets will also be exempt from this new rate, as will bets placed via self-service betting terminals.
- From 1 April 2026, Bingo Duty will be abolished. Bingo Duty is currently set at 10%, payable on the gross profits of land-based bingo businesses.
- The Gross Gaming Yield bandings for Gaming Duty will be frozen from 1 April 2026 until 31 March 2027.
There will be no change to the tax rates payable on the profits of bricks and mortar betting shops and casinos, and no change to Machine Games Duty (i.e. the profits from slot machines and betting terminals); nor will there be any change to Lottery Duty or to Pool Betting Duty.
The OBR has forecast that these changes will raise £1.1 billion for the Treasury by 2029-2030. The Betting and Gaming Council has previously warned that a significant tax increase will effectively function as a 'punters tax', with customers likely to experience worse odds and reduced offers as operators pass on these higher costs. The industry's concern is that this, in turn, risks driving customers towards the unregulated black market, potentially undermining both consumer protection and the Treasury's revenue objectives. This concern is also reflected in the OBR's report, which estimates that the pass through of costs and resulting reduction in consumer demand – including because of 'potential substitution to the illicit market' – will reduce tax yield by £0.5 billion by 2029-2030.
In response to these concerns, the Budget also allocates an additional £26 million of funding to the Gambling Commission over the next three years to tackle the black market.