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Before the UK Budget, Online Casino Tax Has Nearly Doubled and Operators Warn Against More

Before the UK Budget, Online Casino Tax Has Nearly Doubled and Operators Warn Against More
In short: The UK government presents its Budget on 28 October. Gambling firms go into it after the tax on online casino games rose from 21% to 40% in April, with a new 25% rate on online betting due in April 2027. Official figures show gambling tax receipts up 19% so far this tax year, and two listed operators have warned against further gambling tax rises.

Duties already set

Chancellor John Healey wrote to parliament's Treasury Committee on 31 July. The Budget, he said, would come on 28 October 2026, alongside a new forecast from the Office for Budget Responsibility.[1] What the Budget will contain on gambling is not yet known.

The rates already decided at the previous Budget are large. UK gambling tax on remote gaming, which covers online casino games and slots, rose from 21% to 40% of profits from 1 April 2026. From 1 April 2027 bets placed remotely, for example online, will pay a new 25% rate instead of 15%. Online bets on UK horse racing, and bets placed on self-service terminals in betting shops, stay at 15%. Bingo Duty was abolished in April 2026.[2][3]

The government's reasoning was that online casino games generally have lower running costs and are considered more harmful than other gambling. That is why their rate rose more than the one for online betting. After a consultation in 2025 it dropped the idea of one duty at a single rate for all online gambling. It expected the changes to raise over £1 billion a year. About 160 businesses offering online betting to UK customers would be affected, 95 offering online gaming and 55 offering both.[2]

Receipts up 19%

HM Revenue and Customs published its latest figures on 30 September. Provisional receipts from betting and gaming duties for April to July 2026 came to £1,933 million, £309 million or 19% more than in the same months of 2025. Remote Gaming Duty made up 50.0% of that. HMRC says the rise is expected to reflect, in part, the higher rate, which it expects to show in receipts from July onwards. For April to June, total receipts were £985 million, only 0.3% more than a year before, although Remote Gaming Duty alone brought in £376 million, up 22%.[3]

What operators are saying

Entain reported on 15 October that its net gaming revenue in the UK and Ireland grew 8% in the third quarter, "whilst digesting the increasingly challenging tax environment". Its chief executive, Stella David, said the company strongly urges the government "to carefully consider any further gambling tax increases which would threaten the viability of many shops, jobs and livelihoods".[4]

The same day the Rank Group, which runs casinos and bingo clubs, said speculation about the Budget "continues to weigh heavily on investor sentiment". Its chief executive, Richard Harris, warned that any increase to Machine Games Duty, the tax on gaming machines, will raise costs, reduce venue viability and lead to closures and job losses.[5]

Sources

  1. HM Treasury (United Kingdom) — Chancellor letter to the Treasury Select Committee (TSC) - Budget 2026 date (31 July 2026, English). The Budget and forecast on 28 October 2026.
  2. HM Revenue and Customs (United Kingdom) — Gambling duty changes (policy paper, English). The Remote Gaming Duty rise, the new remote betting rate and its exceptions, the end of Bingo Duty, the government's reasons, the consultation, the expected yield and the number of businesses affected.
  3. HM Revenue and Customs (United Kingdom) — UK Betting and Gaming Statistics commentary (August 2025 to July 2026) (30 September 2026, English). Receipts for April to July and April to June 2026, the share and receipts of Remote Gaming Duty, when the higher rate shows in receipts, and the duty changes taking effect.
  4. Entain plc — 2026 Q3 Trading Update (15 October 2026, English). UK and Ireland revenue growth and the statement of the chief executive on gambling tax.
  5. The Rank Group plc — Q1 2026/27 trading update (regulatory announcement, 15 October 2026, via Investegate, English). The statements on the Budget and on Machine Games Duty.

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