UK Treasury Hikes Online Gambling Taxes

Key Takeaways

• Remote Gaming Duty on online casino slots rises from 21% to 40%, effective April 2026, targeting mobile and web-based real-money gaming.
• Online Betting Duty for sports wagering apps increases from 15% to 25%, while bingo duty is abolished to support smaller operators.
• Changes projected to generate over £1 billion annually by 2031, shifting revenue burden to digital platforms without impacting land-based venues.

The UK Treasury announced significant reforms to gambling taxation in the Autumn Budget, reshaping the fiscal landscape for digital operators. Under the revised structure, the Remote Gaming Duty—levied on remote casino games like slots and table games accessed via mobile apps or websites—will double from 21% to 40%. This adjustment directly affects mobile casino platforms, where the majority of UK players engage through iOS and Android devices. Similarly, the Online Betting Duty on sports wagering, predominantly handled via apps, climbs from 15% to 25%. In a contrasting move, bingo duty faces abolition from April 2026, aiming to bolster community halls amid declining attendance.

These hikes stem from the government's push to align online gambling revenue more closely with its economic contributions, amid soaring mobile adoption rates. With over 60% of UK gambling activity now mobile-driven, per recent industry data, the changes underscore a deliberate pivot toward taxing digital convenience over physical venues. Land-based casinos and horse racing levies remain untouched, preserving their competitive edge in a post-pandemic recovery phase.

For operators, the implications are profound. Mobile-first platforms, already navigating tight margins from App Store and Google Play commissions, face compressed profitability. Many will likely pass costs via adjusted odds or reduced promotions, potentially curbing user acquisition in competitive markets like the UK, where iGaming gross gaming revenue hit £6.3 billion last year. Smaller developers specializing in mobile UX enhancements—such as seamless Apple Pay integrations—may consolidate, favoring larger incumbents with diversified revenue streams. Compliance costs could rise too, as firms invest in advanced fraud detection to offset revenue dips, aligning with ongoing Google Play mandates for age-gating in gambling apps.

Players stand to feel the pinch through subtler shifts: expect tighter bonus terms or higher effective house edges on mobile slots, where 5G-enabled live dealer experiences have driven session lengths up 25% year-over-year. Yet, the bingo exemption signals a nod to responsible gaming, potentially encouraging hybrid mobile-web models for casual users. Broader ecosystem effects include accelerated adoption of alternative payments like Google Pay to minimize transaction fees, and a spur for 5G-optimized security layers to combat fraud in high-stakes environments.

Overall, these reforms cement the UK's stance as a regulated iGaming leader, but they challenge mobile operators to innovate in cost efficiency and user retention. As digital gambling evolves, expect a wave of product updates prioritizing low-friction UX and robust anti-fraud measures to maintain trust amid fiscal pressures.

Sources:

• UK Government Autumn Budget Statement
• HMRC Gambling Duties Guidance