UK Raises Online Gambling Taxes to 40% in Budget

UK Chancellor Rachel Reeves announced significant tax increases on online gambling during Wednesday's Autumn Budget, raising duties on remote gaming from 21 percent to 40 percent and on online sports betting, excluding horse racing, from 15 percent to 25 percent, effective April 2026. The changes, aimed at addressing the harms associated with online gambling, are projected to generate £1.1 billion in additional revenue by 2029-30.

Reeves described the reforms as a response to the growth in remote gaming, which she linked to higher levels of addiction and social harm. "Remote gaming is associated with the highest levels of harm," she stated in Parliament, "and so I am increasing remote gaming duty from 21 to 40 percent, with duty on online betting increasing from 15 to 25 percent." The Budget spared in-person gambling venues and horse racing from any increases, citing concerns over potential job losses in those sectors. It also included the complete abolition of bingo duty starting April 2026, a move welcomed by parts of the industry as a partial relief.

Gambling operators reacted swiftly, warning that the hikes could drive customers toward unregulated black market alternatives...