The UK gambling industry is facing stricter regulation but there are also fears of tax rises. Last month saw the Labour Government announce that there is to be a reform of the remote gambling tax system and this has greatly concerned the industry.
At present, there is a three-level tax rate system for the UK gambling industry. The new proposals aim to change this and just have one consolidated rate which would be a Remote Betting & Gaming Duty.
A period of consultation is now taking place and legal experts have urged the gambling industry to ensure that their point of view is made clear.
The current system comprises a Remote Gaming Duty (RGD) which is 21% of an operator’s profit. Then there’s the General Betting Duty (GBD) which is 15% of profit and the Pool Betting Duty (PBD) which is 15% of the total net stake receipts.
The gambling industry has expressed concern that all verticals could have a 21% duty. If this was to be the case, then it could make the sector “economically unviable.” according to tax lawyer Zoe Feller.
Her hope is that if the industry can express their fears during the consultation period, they would be taken on board by the government. “The more data the government collects on the conduct, the more likely it is to result in a tax that actually functions and works,” the tax lawyer added.
Another concern the gambling industry has is that the planned Remote Betting & Gaming Duty would require an infrastructure that would see additional administration work for operators to perform.
The CEO of the Betting and Gaming Council is Grainne Hurst. Writing on their website, the CEO stated that a tax rise would be “utterly self-defeating for the Government.” A key policy for the new Labour administration has been promoting growth in the economy. The CEO believes that if they were to raise gambling taxes, this “would make a mockery of their growth strategy.”
Her opinion is that such a move would not see additional funds raised for the Treasury. It would also be an unwelcome move as Hurst says recent stricter regulation has cost the gambling sector “over a billion pounds in lost revenue.”
The CEO added that stricter regulation is driving gamblers to the “unsafe gambling black market online.” That is not desirable due to the fact the black market does not pay tax and “doesn’t have any of the safer gambling protections available in the regulated sector.”
A spokesperson for GamblerMedia.com, a UK-based casino and betting comparison site, commented: “Applying a blanket 21% tax rate across all remote gambling sectors could seriously threaten market sustainability. The government needs to strike a balance between regulation and economic viability, or risk pushing players toward the unregulated black market.”
BGC members greatly help the UK economy with a contribution of £6.8 billion. They also generate £4 billion in tax and provide 109,000 jobs. The advice of the CEO to the Government is that they “must listen to business and sport and not drive growth, investment and jobs out of one of the UK’s few global business success stories.”
The consultation process is ongoing and submissions will close on July 21. Once the data is fully analyzed, it is expected that the final plans will be announced in the 2025 autumn budget.
The CEO of Entain is Stella David and her view is that any changes won’t happen for another three years. “A long journey” is underway and “a lot can happen between now and then,” said the CEO.
The UK gambling industry continues to prosper, especially online. Recent figures released by the UK Gambling Commission showed that the total online gross gambling yield for the first three months of 2025 was £1.45 billion. That is a total which is 7% higher than seen in the same period in 2024.
WIth such impressive GGY figures being achieved, it would not be a surprise if the government did want to increase the tax rate. There were concerns that a rise would be announced during last autumn’s budget. The gambling industry was relieved when that didn’t happen. The increase in National Insurance is affecting finances though.
This year has already seen stricter regulation announced for the UK gambling industry. Online slots GGY for the first three months of the year was £689 million. That figure was 11% higher than seen in the same period last year. The total was 47% of the total GGY.
There remains concerns about the safety of online slots and how addictive they can be. This year has seen new maximum stakes set for the games. Those aged 18-24 are only able to gamble £2 on a spin. For older players, the new maximum stake is £5.
Also announced has been a mandatory levy for UK gambling companies. This has the aim of raising £100 million a year from the industry. The funds received will be used to fund research into gambling harm. Some would go to the NHS and help those who have encountered problems due to their gambling behaviour.
