Online Gambling Tax Set to Soar in 2026

Online Gambling Tax Hike Announced

The government has announced a significant increase in Remote Gaming Duty (RGD), which is set to rise from 21% to 40% on April 1st, 2026. This substantial tax increase is projected to generate over £1 billion annually for the nation's finances.

Why the Change?

The decision to target remote gaming with this tax increase stems from the belief that online gambling operations have lower overheads compared to traditional, land-based establishments. Furthermore, there's evidence suggesting that online gambling carries a greater risk of harm for consumers, and it is hoped the new tax will dissuade gambling firms from encouraging customers towards more dangerous products.

Remote gaming encompasses online casinos, virtual slot machines, and a range of other digital gambling products accessible via computers and mobile devices. This sector has seen considerable expansion over the last decade, particularly during the pandemic when physical venues faced restrictions.

Bingo Duty Scrapped

In contrast, Bingo Duty will be completely abolished from the same date. This move acknowledges the unique demographic and social role of bingo, which is often played in community venues and by older people, unlike the high-intensity online gambling that is the target of the tax rise.

The scrapping of Bingo Duty is expected to provide a boost to traditional bingo halls, many of which have been struggling to compete with online alternatives and shifting leisure habits. Industry representatives have welcomed the change, praising it as recognition of bingo's distinctive characteristics.

Industry Concerns

The gambling industry has voiced serious concerns about the increased duty. Trade bodies have argued that the near-doubling of the tax rate will significantly impact the economics of operating in the UK market, potentially leading to reduced investment and innovation.

Smaller operators are expected to face particular difficulties, with some analysts forecasting further consolidation as companies struggle to remain profitable under the new tax regime. Larger operators, with diverse product portfolios and international operations, may be better positioned to absorb the increased costs.

Market Changes on the Horizon

Initial reports indicate that some operators are already re-evaluating their strategies in the UK. The combined effect of higher taxation and stricter regulatory requirements has created what industry experts are calling the most challenging operating environment in the sector's recent history.

Players may see changes in promotional offers and game availability as operators adjust their offerings to maintain their profit margins. However, the government believes that a smaller, more sustainable gambling sector will better serve public health goals.

A Wider Picture

The duty increase is part of a broader set of gambling reforms being brought in by the current government. Alongside new restrictions on bonuses and upcoming affordability checks, these measures represent a comprehensive approach to regulating the gambling industry.