UK raises taxes for iGaming operators

The UK government has announced a significant increase in taxes for iGaming operators, while the main tax regimes for traditional land-based companies will remain unchanged. The measure is expected to bring in more than $1.3 billion to the budget once implemented.

From 1 April 2026, the tax on online casinos will increase from 21% to 40%. At the same time, from April 2027, the tax rate on online betting will also rise from 15% to 25%. Horse racing betting rates in the UK will remain unchanged, and land-based gambling establishments will retain their current tax regimes. Moreover, bingo halls will receive additional concessions: from April 2026, the bingo tax will be completely abolished for them.

The Tax Service explained the decision by the rapid growth in the popularity of online platforms and increasingly convincing evidence of the harm associated with accessible and engaging digital products.

The Treasury Committee also noted that over the past ten years, the market share of gambling operators has grown sharply, largely thanks to smartphones and games specifically designed to retain players.

The committee has also repeatedly questioned claims by some gambling companies that online betting does not pose social risks. Last year, MPs dismissed such arguments as unreliable. They emphasised that the most addictive digital products offer little benefit to society while putting individuals at risk.

Treasury Committee Chair Meg Hillier supported the government’s decision to raise taxes. She said the move reflects a more realistic view of the harm caused by some forms of gambling.

“The Chancellor’s decision to use the budget to increase taxes on online gambling is a victory for common sense. The Chancellor made the right decision in agreeing with the Committee that the tax on remote betting, including highly addictive online casino games, should reflect the harm they cause.”

The Treasury said the plan was part of a broader strategy to create a balanced and sustainable tax system.