UK Chancellor Reeves Wants to Raise £1bn as Remote Gaming Duty is Set to Double

News of the UK government’s impending tax changes have been discussed since the new budget was announced. And they’ve been a topic of discussion in the entire industry, not just the UK. As one of the most important gambling markets, the UK is the gold standard, and their major shake-up of the gambling tax framework, can affect the entire industry very easily.

Recently, Chancellor Rachel Reeves unveiled an array of reforms whose goal is to raise an estimated £1.1 billion over the next six years. The changes, which are the most consequential tax overhaul in the market in years, will considerably increase the cost of operating online casino and betting products in the UK.

2026 The Year of Changes

Beginning April 2026, Remote Gaming Duty (RGD) – the tax increase we spoke about – on online casino games will rise sharply from 21% to 40%. That’s a steep incline for sure.

As it stands, the increase will affect both local licensed operators and offshore operators that are offering services to UK players.

Various experts and analysts warn the steep tax jump will have an array of effects on a number of things. For example, it will lower odds and the RTP (return to player) rates as operators absorb higher operating costs.

But that’s not all. A year after that, there are more changes planned. Namely, in April 2027, General Betting Duty (GBD) on remote gaming will also go up from 15% to 25%, which is yet another sharp increase.

This higher rate will apply to online and phone betting, but will exclude self-service betting terminals, pool betting, spread betting, and horse racing wagers. In other words, it’s a tax structure that continues to favor land-based and traditional betting formats.

In a move widely viewed as a targeted reprieve for brick-and-mortar gambling businesses, the Chancellor confirmed that Bingo Duty, which is currently set at 10%, will be abolished entirely from April 1st, 2026. Machine Gaming Duty (MGD), paid by arcades, pubs, and casinos on gaming machines, will remain unchanged.

Remote VS Land-Based

Reeves framed the reforms as a deliberate distinction between online and land-based gambling, saying: “Remote gaming is associated with the highest levels of harm and so I am increasing Remote Gaming Duty from 21% to 40%.” The statement underscores the government’s position that online casino-style products pose greater consumer risk and should therefore bear heavier tax obligations.

Yet the aggressive tax rises come with their own risks. Industry experts think that the government is taking a calculated risk. According to them, they are betting on the chance that the revenue from tax increases tips the scales to the government’s favor. The government hopes that the revenue increase is going to be bigger than the losses that will come as player migrations to offshore, unregulated casinos.

Ultimately, it’s not up to the government to see through the goal of raising £1.1 billion. That entirely rests in the hands of the operators and how they adjust to the new rates. Also, players – the player rection will also dictate the direction that the industry will take once the changes go into effect.