Remote Gaming Duty to Rise to 40% From April 2026
The UK government has confirmed that Remote Gaming Duty will nearly double from 21% to 40% effective April 1, 2026. The significant tax increase is expected to raise over £1 billion annually for public finances, marking one of the most substantial fiscal interventions in the gambling sector's history.
Rationale Behind the Increase
The government has targeted remote gaming specifically, citing lower operating costs compared to land-based gambling establishments and evidence suggesting online gambling carries higher harm potential. Ministers argue the increase will help disincentivise gambling companies from pushing consumers towards more harmful products.
Remote gaming encompasses online casinos, virtual slot machines, and other digital gambling products accessed via computers and mobile devices. The sector has experienced substantial growth over the past decade, particularly accelerated during the pandemic years when physical venues faced restrictions.
Bingo Duty Abolished
In a contrasting move, the government will abolish bingo duty entirely from the same date. This decision reflects recognition of bingo's different demographic and social role, with the activity often associated with community venues and older participants rather than the high-intensity online gambling the tax rise targets.
The abolition is expected to benefit traditional bingo halls, many of which have struggled against competition from online alternatives and changing leisure habits. Industry representatives have welcomed this element of the reforms as recognition of bingo's distinct nature.
Industry Impact Assessment
The gambling industry has expressed significant concerns about the duty increase. Trade bodies argue the near-doubling of the tax rate will fundamentally alter the economics of operating in the UK market, potentially reducing investment and innovation.
Smaller operators face particular challenges, with some analysts predicting further consolidation as companies struggle to maintain profitability under the new regime. Larger operators with diverse product portfolios and international presence may be better positioned to absorb the increased costs.
Market Restructuring Expected
Early reports suggest some operators are already reassessing their UK strategies. The combination of increased taxation and stricter regulatory requirements has created what industry commentators describe as the most challenging operating environment in the sector's modern history.
Players may notice changes to promotional offers and game availability as operators adjust their offerings to maintain margins. However, the government maintains that a smaller, more sustainable gambling sector better serves public health objectives.
Broader Regulatory Context
The duty increase forms part of a broader package of gambling reforms implemented by the current government. Combined with new bonus restrictions and forthcoming affordability checks, the measures represent a comprehensive attempt to reshape the UK gambling landscape.
Consumer advocacy groups have broadly welcomed the changes, arguing that the gambling industry has operated with insufficient taxation and oversight for too long. The revenue generated will support public services and potentially fund treatment programmes for problem gambling.
