UK Government Confirms Increased Taxes on Online Gambling Activities

The UK government has officially announced an increase in taxes on online gambling, following the Treasury Committee’s recommendations. This decision, outlined in Chancellor Rachel Reeves’ Autumn Budget, aims to address rising concerns over digital betting and its potential harms.

The new tax framework, detailed on the UK Parliament website, is projected to generate over £1 billion annually once implemented. It specifically targets remote betting and online casino games, which come with higher addiction risks. Meanwhile, traditional gambling activities like horse racing and bingo will either see no tax increases or reduced charges.

In its response to our report on the taxation of gambling, the Government has confirmed its agreement with our view that online gaming should be subject to increased taxation while other forms such as horse racing and bingo should not.

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— Treasury Committee (@CommonsTreasury) January 22, 2026

Tax Increase Details

The confirmed tax hikes by the UK government under new plans will increase remote gaming duty for online casinos from 21% to 40%, effective April 1, 2026. Additionally, remote sports betting will see its duty increase from 15% to 25% starting April 1, 2027.

These adjustments aim to differentiate gambling types based on their societal impact.

Bets on UK horse racing will remain unaffected, and in-person gambling venues will keep their current tax rates. Bingo halls will benefit the most, as bingo duty will be eliminated from April 2026. Ministers stated that the changes align with the Treasury Committee’s view on addressing the harms of online gambling.

Industry Claims Rejected

The Treasury Committee’s recommendations were influenced by its dismissal of the gambling industry’s claims that online betting does not result in social harm. During hearings last October, Betting and Gaming Council CEO Grainne Hurst faced significant backlash from MPs for asserting that gambling creates no “social harm.”

In its announcement regarding the tax increases, the government emphasized that its endorsement of the committee’s findings came after rejecting industry testimony regarding the absence of social ills. Dame Meg Hiller, chair of the committee, criticized the claims, stating, “I find it staggering that the industry can make the boldfaced claim that its activities do not cause harm.” She argued that while some gambling sectors are beneficial, certain online products pose significant risks.

Expected Revenue Increase

The government anticipates that the new framework will generate over £1 billion annually for public funds, despite evidence from nations like the Netherlands indicating that higher online gambling taxes can sometimes reduce overall revenues. The Treasury Committee noted that the initiative is part of a broader effort to establish a “fair, modern, and sustainable tax system.”