The British government has announced plans to consolidate the tax rates for remote gambling activities into a single, unified tax band. This reform would apply to all online gambling products including betting, casino, and bingo effectively replacing the current fragmented system of variable tax rates.
Current Tax Structure Creates Inefficiencies
At present, remote betting is taxed at 15%, remote casino (gaming duty) at 21%, and remote bingo duty at 15%. These disparate rates, introduced in piecemeal fashion over the past decade, have led to regulatory complexity and tax inefficiencies for both operators and HM Revenue & Customs (HMRC).
The proposal, part of the government’s ongoing Gambling Act Review, seeks to streamline these obligations, offering greater clarity while ensuring that operators across different verticals contribute fairly. According to HM Treasury, the objective is to create a “simpler, more modern tax regime that reduces compliance burdens and levels the playing field.”
Potential Impacts on the Gambling Industry
While the exact rate of the unified tax band remains under consultation, early industry analysts suggest a figure between 18% and 20% is likely to balance government revenue needs with operator sustainability. Operators offering multiple verticals—especially those who currently benefit from lower bingo or betting tax rates—could see increased costs, while those focused on online casino might gain from a slightly reduced tax burden.
The Betting and Gaming Council (BGC), which represents much of the UK gambling sector, has cautiously welcomed the consultation, emphasizing the importance of maintaining competitiveness against unlicensed offshore operators.
Next Steps
Stakeholders, including gambling operators, tax specialists, and consumer advocates, have until 21 June 2025 to provide feedback. The government aims to finalize legislation by late 2025, with implementation expected in 2026.
