The UK online gambling industry is bracing itself for significant change following the recent announcement from Chancellor Rachel Reeves in the Autumn Budget 2025. These changes are expected to reshape the iGaming industry, affecting everything from marketing strategies to player experiences. The rise in online gambling is undeniable but as the industry continues to expand, regulators look to balance consumer protection with market growth.
However, with the recent government announcement that Remote Gaming Duty is set to rise from 21% to 40% in April 2026, industry leaders share concerns for the direct impact this may have on players. With such a steep hike in taxes, industry experts suggest that many operators will be forced to scale back on player value by introducing lower RTP slots, reduced bonuses and fewer promotions across the sector.
Overview of the Autumn Budget 2025
There’s a lot to digest from Chancellor Rachel Reeves’ Autumn Budget but here’s an overview of the expected changes and their respective timelines:
- Remote Gaming Duty will rise from 21% to 40% in April 2026
- Online Betting Duty will rise from 15% to 25% in April 2027
- Casino Gaming Duty is frozen for 2026-27 and then increase in line with inflation
- A new General Betting Duty of 25% will be introduced
- The 10% duty on Bingo will be scrapped from April 2026
- Horse Racing receives a full exemption from all tax increases
The sector is facing a challenging adjustment period, particularly for online-focused brands and smaller operators. Players will more than likely feel the heat through reduced promotions, increasing minimum bets, lower RTP rates, and the possibility of wider odds margins in sports betting. The Treasury projects a £1.1 billion per year by 2031 from boosted taxes which will be used to reduce child poverty in the UK.
Changes to Online Bonuses
It’s not just the smaller online operators that will suffer from the impact of this significant hike in taxes, and players will soon discover that even the best online casinos in UK, as reviewed on Casino.com, will begin to tighten their belts. With the proposed tax increase set to rise from 21% to 40%, operators will be required to pay more tax on the bonuses being offered. Therefore, it is expected that many sites will look to reduce the number of promos and bonuses on offer.
Another significant change for online casinos is the introduction of a maximum 10x wagering requirement cap. Bonuses are an important marketing tool for online gambling sites and are essentially used to attract new punters to the site. However, bonuses are often accompanied by complex terms and high wagering requirements. For this reason, the UK Gambling Commission (UKGC) has announced new measures aimed at making them safer and easier to understand.
Rise of the Unlicensed Market
Unfortunately, these significant changes will only affect licensed and regulated operators in the UK. The growing fear is that once taxes increase, UK online casinos will become less attractive to players as they will be forced to offer fewer bonuses and potentially reduce game payout rates. This may have an adverse knock-on effect by pushing players towards offshore and unlicensed sites where UK gambling laws are ineffective, bonuses are in abundance, wagering requirements are high, and bonus terms are complex.
Other European markets have seen similar patterns after significant tax hikes, with players switching to higher value but unregulated offshore sites. Industry experts have repeatedly stated that maintaining player value is key to preventing the growth of the illegal market, but with the huge hike in UK taxes for the online casino industry, concerns are now heightened. Although tax increases are meant to strike a balance between raising revenue and protecting public health, critics warn of side effects plus an unwanted advantage for the unregulated offshore market.
Summary
As 2025 draws to a close, the online casino industry is on the brink of yet more impactful changes brought about by a significant increase in taxes. During this last year, UK casino operators have been subject to a mandatory levy which is set to generate approximately £100 million per annum, an increased focus on financial vulnerability checks, the introduction of maximum bet limits for online slots, plus increased marketing restrictions and consumer protection measures. Moving into 2026, licensed UK operators face further change as the government plough ahead with their proposed agenda to seek a fair and responsible online gambling economy.
