UK Casino Tax Surge to 40% for Online Casinos
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Key Takeaways:
- Remote gaming duty for online casino operations will rise to 40% from 2026, with remote betting duty increasing to 25% of gross gambling revenue (GGR) from 2027.
- The changes are projected by the Office for Budget Responsibility to generate £1.1 billion in additional tax revenue but have sparked industry concerns over potential offshore migration.
- This builds on earlier 2025 measures, including the statutory gambling levy and online slots stake limits (£5 for 25+, £2 for 18-24) aimed at reducing gambling harm.
The UK government’s Autumn Budget has introduced significant tax hikes on remote gambling activities, directly impacting online casino licensed by the Gambling Commission. Remote gaming duty — the primary tax on online casino GGR — is set to increase from its current rate to 40% starting next year. Concurrently, the remote betting duty will rise to 25% from 2027. These adjustments follow the implementation of the statutory gambling levy in April 2025, which replaced voluntary contributions and has already generated nearly £120 million annually for research, prevention, and treatment of gambling-related harms.
Industry observers note the measures aim to ensure fair contributions across operators and address high-risk products like online slots. However, critics argue the cumulative burden — combining the levy, stake limits, and now elevated duties — could drive players and operators toward unlicensed offshore platforms. Discussions highlight uncertainties around the Office for Budget Responsibility's £1.1 billion revenue forecast, with some analysts questioning whether the hikes will achieve fiscal goals without eroding the regulated market share.
For the global online casino industry, particularly in Europe, where the United Kingdom remains a key benchmark, these developments underscore ongoing tension between harm reduction policies and commercial sustainability. Operators may need to adapt through cost efficiencies, product diversification, or enhanced responsible gambling tools to maintain margins. The changes also signal continued regulatory tightening in mature markets, potentially influencing approaches in other jurisdictions, balancing player protection with industry viability.
